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Problem 1 1 - 1 1 ( Algo ) Required: A pension plan is obligated to make disbursements of $ 2 . 6 million, $

Problem 11-11(Algo)
Required:
A pension plan is obligated to make disbursements of $2.6 million, $3.6 million, and $2.6 million at the end of each of the next years, respectively. The annual interest rate is 7%. 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? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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