QUESTION 26 0.4 p. $1,000 par value zero-coupon bonds (Ignore liquidity premiums) Bond Years to Maturity Yield to Maturity 1 6.00% B 2 7.50% C 3 7.99% D 4 8.49% E 5 10.7096 The expected 2-year interest rate 3 years from now should be 9.55% 14.89% 13.73% 11.74% Click Save and Submit to save and submit. Click Save All Answers to save all answers, Save All Answer QUESTION 29 0.4 poir A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 5-year maturity zero-coupon bonds and 4% yield perpetuities to immunize its interest rate risk. If there are no other assets funding the plan, how much of its portfolio should it allocate to the zero-coupon bonds to immunize it? 33.58% 48.38% 25.48% 52.38%