1.A pension fund anticipates needing to pay out $2.5 million dollars in benefits in 2027 (seven years from today).Assume theyield curve is a flat 5%.It has two options for bonds in which to invest: a zero coupon Treasury bond with a time to maturity of 10 years and YTM of 3%, and a zero coupon Johnson & Johnson bond with 3 years to maturity and a 6% YTM. They want zero interest rate risk. How much money should they invest in the Treasury? Note: Answer in dollars, rounding to the nearest cent.