CHW7: Chapter 11 Managing Bond Portfolios Help Save & Subme Check my work 7 10 po Pension funds pay lifetime annuities to recipients afum remains in business indefinitely, the pension obligation will resemblea perpetuity Suppose therefore, that you are managing a pension fund with obligations to make perpetual payments of $26 million per year to beneficiaries. The yield to maturity on all bonds is 16% a. If the duration of 5 year maturity bonds with coupon rates of 12% (paid annually 40 years and the duration of 20-year maturity bonds with coupon rates of 6% paid annually is 79 years, how much of each of these coupon bonds in market value will you want to hold to both fully fund and immunize your obligation (De nos round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.) Hollos Syer bord 20 year bond nation milion b. What will be the par value of your holdings in the 20 year coupon bond? (Enter your answer in dollars not in millions. Do not round Intermediate calculations. Round your answer to the nearest dollar amount.) PV Activato Windows M GE Type here to search O Links 999 Cear A 4 ENG 104 AM GM CHW7: Chapter 11 Managing Bond Portfolios Help Save & Subme Check my work 7 10 po Pension funds pay lifetime annuities to recipients afum remains in business indefinitely, the pension obligation will resemblea perpetuity Suppose therefore, that you are managing a pension fund with obligations to make perpetual payments of $26 million per year to beneficiaries. The yield to maturity on all bonds is 16% a. If the duration of 5 year maturity bonds with coupon rates of 12% (paid annually 40 years and the duration of 20-year maturity bonds with coupon rates of 6% paid annually is 79 years, how much of each of these coupon bonds in market value will you want to hold to both fully fund and immunize your obligation (De nos round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.) Hollos Syer bord 20 year bond nation milion b. What will be the par value of your holdings in the 20 year coupon bond? (Enter your answer in dollars not in millions. Do not round Intermediate calculations. Round your answer to the nearest dollar amount.) PV Activato Windows M GE Type here to search O Links 999 Cear A 4 ENG 104 AM GM