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My pension plan will pay me $ 1 2 , 5 0 0 once a year for a 1 0 - year period. The first

My pension plan will pay me $12,500 once a year for a 10-year period. The first payment will come in exactly five years. The pension fund wants to immunize its position.Required:What is the duration of its obligation to me? The current interest rate is 7.0% per year.If the plan uses 5-year and 20-year zero-coupon bonds to construct the immunized position, how much money ought to be placed in each bond?What will be the face value of the holdings in each zero?

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