You manage a pension fund that will provide retired workers with lifetime annuities. You determine that the payouts of the fund are (approximately) level perpetuities of $1 million per year. The interest rate is 10%. You plan to fully fund the obligation using 5-year maturity and 20-year maturity zero-coupon bonds. How much market value of each of the zeros will be necessary to fund the plan if you desire an immunized position? 4 million for 5 year bond and 6 million of 20-year bond. 6 million for 5 year bond and 4 million of 20-year bond. 6.67 million for 5 year bond and 3.33 million of 20-year bond. 3.33 million for 5 year bond and 6.67 million of 20-year bond. Question 9 Using the same information from question 8, suppose that one year has passed, and the interest rate remains at 10%. What actions are required to rebalance the portfolio? buy additional 0.67 million 5-year bond and sell 0.67 million 20-year bond. Sell 0.67 million 5-year bond, purchase additional 0.67 million 20-year bond. Sell 1.27 million 5-year bond, purchase additional 0.27 million 20-year bond and use the net 1 million cash to make the payment buy additional 0.27 million 5-year bond, sell 1.27 million 20-year bond and use the net 1 million cash to make the payment