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.)
In choosing insurance, the premium is the amount that you should pay to the insurance company in exhange for the coverage of their service. While the deductibles are the amount that you should pay each year before the insurance company start paying on your behalf.