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Helen [10]
3 years ago
6

A pension plan is obligated to make disbursements of $2.5 million, $3.5 million, and $2.5 million at the end of each of the next

three years, respectively. The annual interest rate is 8%. If the plan wants to fully fund and immunize its position, how much of its portfolio should it allocate to one-year zero-coupon bonds and perpetuities, respectively, if these are the only two assets funding the plan? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Business
1 answer:
Anit [1.1K]3 years ago
5 0

Answer:

Please see attachment

Explanation:

Please see attachment

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