Chapter 11 Managing Bond Portfolios You manage a pension fund that will provide retired workers with lifetime annuities. You determine that the payouts of the fundar going to closely resemble level perpetultles of $1.6 million per year. The interest rate is 4%. You plan to fully fund the obligation us 5-year and 20-year maturity zero-coupon bonds. a. How much market value of each of the zeros will be necessary to fund the plan if you desire an immunized position? (Do not rol Intermediate calculations. Enter your answers in millions. Round your answers to 1 decimal place.) Twenty-year b. What must be the face value of each of the two zeros to fund the plan? (Do not round Intermediate calculations. Enter your answers in millions rounded to 2 decimal places.) Five-year Twenty-year