8 ) please help

Pension funds pay lifelime annuities to reciplents. If a firm remains in business indefinttely, the pension obligation will resemble a perpetuity. Suppose. Therefore. that you are managing a pension fund with obligations to make perpetual payments of $3.0 mililon per year to beneficiaries. The yeld to maturity on all bonds is 20%. Required: o. If the duration of 5 -year maturity bonds with coupon rates of 12% (paid annually) is 3.9 years and the duration of 20 -year maturity bonds with coupon rates of 6% (paid annualiy) is 6.7 years, how much of each of these coupon bonds (in market value) will you want to hold to both fully fund and immuntze your obligation? (Do not round intermediate calculotions. Enter your answers in millions rounded to 5 decimal ploces.) b. What will be the par value of your holdings in the 20 year coupon bond? (Enter your answer in dollars not in millions. Do not round intermediote calculations. Round your answer to the nearest dollar amount.)