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20. Ms. Kim manages a superannuation fund that will provide retired workers with perpetuities that pay out $3 million coupon per annum. The annualized yield to maturity is 5%. Ms. Kim aims to fully immunise the obligation of perpetuities using six-year and 30-year maturity zero-coupon bonds. How much market value of six-year zero-coupon bond is required today to immunise the obligation? Please choose the correct range for the market value, i.e., if the market is $10 million, please select "A value between $5 million and $15 million" A. A value between $15 million and $25 million B. A value between $5 million and $15 million C. A value between $25 million and $35 million D. A value between $1 million and $5 million E. None of the other answers are correct. 20. Ms. Kim manages a superannuation fund that will provide retired workers with perpetuities that pay out $3 million coupon per annum. The annualized yield to maturity is 5%. Ms. Kim aims to fully immunise the obligation of perpetuities using six-year and 30-year maturity zero-coupon bonds. How much market value of six-year zero-coupon bond is required today to immunise the obligation? Please choose the correct range for the market value, i.e., if the market is $10 million, please select "A value between $5 million and $15 million" A. A value between $15 million and $25 million B. A value between $5 million and $15 million C. A value between $25 million and $35 million D. A value between $1 million and $5 million E. None of the other answers are correct

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