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 $2 million per year to beneficiaries. The yield to maturity on all bonds is 16%.

2) If the par value fo the 20-year coupon bond is 1,000, how many 20-year. bonds you need to buy in order to match your holdings in Question 1 ($390.37)