A pension plan needs to make a payment of R6,000,000 after 5 years. They can...
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A pension plan needs to make a payment of R6,000,000 after 5 years. They can buy a bond with a duration of 2-years and a 7-year bond with a duration of 5.8 years. Assume interest rates are flat at 8%. Determine the amount to be invested in 7-year bonds to immunise this obligation. O A. R859.684.04 O B. R3,223,815.14 O C. R1,263,157.89 O D. R4.736,842.11 A pension plan needs to make a payment of R6,000,000 after 5 years. They can buy a bond with a duration of 2-years and a 7-year bond with a duration of 5.8 years. Assume interest rates are flat at 8%. Determine the amount to be invested in 7-year bonds to immunise this obligation. O A. R859.684.04 O B. R3,223,815.14 O C. R1,263,157.89 O D. R4.736,842.11
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