The liabilities duration of XYZ fund is equal to 15 years. XYZ wants to immunize itself against the volatile interest rate. The CEO thinks that they should buy a 5-year zero coupon bond and perpetual bonds yielding 4%. However, the CFO affirms that they should buy a 4-year zero coupon bond and perpetual bonds yielding 5%. Which of the following statements is TRUE? *

a. According to the CEOs viewpoint, the weight of the zero-coupon bonds must be equal to 52.38% while according to the CFOs viewpoint the weight of the perpetuities must be equal to 47.62%

b. According to the CEOs viewpoint, the weight of the zero-coupon bonds must be equal to 64.71%, while that of the perpetuities must be equal to 35.29%

c. According to the CFOs viewpoint, the weight of the perpetuities must be equal to 64.71%, while according to the CEOs viewpoint their weight must be equal to 52.38%.

d. According to the CEOs viewpoint the weight of the perpetuities must be equal to 47.62%, while according to the CFOs viewpoint their weight must be equal to 64.71%.

e. None of the above