Question: show work please Problem 3: You are managing a pension fund that will provide retired workers with lifetime annuities. You determine that the payouts of

show work please

Problem 3: You are managing a pension fund that will provide retired workers with lifetime annuities. You determine that the payouts of the fund are essentially going to resemble a perpetuity of 3 million per year. The interest rate is 5%. You plan to fully fund the obligation using a 5-year and 30-year maturity zero-coupon bond. How much of each bond will you hold in your portfolio? Problem 3: You are managing a pension fund that will provide retired workers with lifetime annuities. You determine that the payouts of the fund are essentially going to resemble a perpetuity of 3 million per year. The interest rate is 5%. You plan to fully fund the obligation using a 5-year and 30-year maturity zero-coupon bond. How much of each bond will you hold in your portfolio

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