Pension funds pay lifetime annuities to recipients. If a firm will remain in business indefinitely, the pension obligation will resemble a perpetuity. Suppose, therefore, that you are managing a pension fund with obligations to make perpetual payments of $$1\mathrm{.}9$ million per year to beneficiaries. The yield to maturity on all bonds is $19\mathrm{.}0\%.$

Required:

If the duration of $5-$year$-$maturity bonds with coupon rates of $11\mathrm{.}8\%($paid annually$)$ is four years and the duration of $20-$year$-$maturity bonds with coupon rates of $7\%($paid annually$)$ is $11$ years, how much of each of these coupon bonds $($in market value$)$ will you want to hold to both fully fund and immunize your obligation?

Note: Do not round intermediate calculations. Enter your answers in millions rounded to $2$ decimal places.

What will be the par value of your holdings in the $20-$year coupon bond?

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $2$ decimal places.