A pension plan is obligated to make disbursements of $3 million, $11 million, and $9 million...

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A pension plan is obligated to make disbursements of $3 million,$11 million, and $9 million at the end of each of the next threeyears, respectively. The interest rate is 9% annually. If the planwants to fully fund and immunize its position, how much of itsportfolio should it allocate to one-year zero-coupon bonds andperpetuities, respectively, if these are the only two assetsfunding the plan? (Round your answers to 2 decimal places.Omit the "%" sign in your response.)

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A pension plan is obligated to make disbursements of $3 million,$11 million, and $9 million at the end of each of the next threeyears, respectively. The interest rate is 9% annually. If the planwants to fully fund and immunize its position, how much of itsportfolio should it allocate to one-year zero-coupon bonds andperpetuities, respectively, if these are the only two assetsfunding the plan? (Round your answers to 2 decimal places.Omit the "%" sign in your response.)

A pension plan is obligated to make disbursements of $3 million, $11 million, and $9 million...

80.2K

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Finance

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