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. Find the duration of the plan's obligations if the interest rate is 8% annually.

Duration______ years

A pension plan is obligated to make disbursements of $1.8 million, $2.8 million, and $1.8 million at the end of each of the next three years, respectively. The annual interest rate is 9%. 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?

Investment in one-year zero-coupon bonds_______%

Investment in perpetuity_______%