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Required: A pension plan is obligated to make disbursements of $ 2 . 7 million, $ 3 . 7 million, and $ 2 . 7
Required:
A pension plan is obligated to make disbursements of $ million, $
million, and $ million at the end of each of the next three years,
respectively. The annual interest rate is If the plan wants to fully fund
and immunize its position, how much of its portfolio should it allocate to
oneyear zerocoupon bonds and perpetuities, respectively, if these are the
only two assets funding the plan? Do not round intermediate
calculations. Round your answers to decimal places.
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