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Farrah-Fowler Financial pays lifetime annuities to it's pension recipients. Assuming Farrah Fowler stays in business...

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Farrah-Fowler Financial pays lifetime annuities to it's pension recipients. Assuming Farrah Fowler stays in business indefinitely, the pension obligations resemble a perpetuity. Assume Farrah Fowler Financial has the obligation to make perpetual payments of $3.5 million per year to pension beneficiaries. The yield to maturity on all bonds is 175% What is the present value of Forroh-Fowler's obligation to its pension fund receipents? (Enter your answer in millions rounded to 2 decimal places. Presnt value of obligation million 05 If the duration of 5-year maturity bonds with coupon rates of 14.8% (paid annually) is four years and the duration of 20 year maturity bonds with coupon rates of 8% (pold annually) is 11 years, how much of each of these coupon bonds (in market value) Will Farrah- Fowler want to hold to both fully fund and immunize pension obligations? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.) 5-year bond 20.year bond million million What will be the par value of Farrah Fowler's holdings in the 20-year coupon bond? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Par value million

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