Question 43 (1 point) Suppose that on 4/30/2020, the duration of Cummins' U.S. pension liability is estimated at 8 years. Cummins wants its bond investments in the pension fund to hedge all of the PBO's exposure to the discount rate. If the PBO is $2.5 billion, the fair value of pension assets are $2.4 billion, and the fund is 90% in bonds and 10% in stocks, what duration of bonds need to be purchased? o 10.84 years 9.69 years O 9.26 years Previous Page Next Page Page 43 of 50 Question 43 (1 point) Suppose that on 4/30/2020, the duration of Cummins' U.S. pension liability is estimated at 8 years. Cummins wants its bond investments in the pension fund to hedge all of the PBO's exposure to the discount rate. If the PBO is $2.5 billion, the fair value of pension assets are $2.4 billion, and the fund is 90% in bonds and 10% in stocks, what duration of bonds need to be purchased? o 10.84 years 9.69 years O 9.26 years Previous Page Next Page Page 43 of 50