SOA/FM SAMPLE QUESTION #128

128. An insurance company has a known liability of 1,000,000 that is due 8 years from now. The technique of full immunization is to be employed. Asset I will provide a cash flow of 300,000 exactly 6 years from now. Asset II will provide a cash flow of X, exactly y years from now, where y 8.
The annual effective interest rate is 4%. Calculate X.
(A) 697,100
(B) 698,600
(C) 700,000
(D) 701,500
(E) 702,900