Suppose you are a pension fund manager and you have a three-year obligation of 120 million. You would like to dedicate the amount of money needed for that today and hope you can make a rate of return of 6% on it. A. Assuming you can find a three year zero with 6% rate of return, how much money do you need to dedicate today in order to have the 120 million in three years? B) Now assuming that you can't find a three-year zero with 6% YTM, but you do find the following bonds with 6% YTM: A five year, 8% semi annual bond A four year, 9% semi annual bond A one year zero bond They are all fairly priced Which bonds are the best ones to choose for a dedicated, immunized portfolio? C) Calculate the dollar amounts you need to put in each bond and the number of bond of each you need to buy. D) Now go back to part 'a' above. If you can find the three year zero with 6%, what adjustment do you need to make to the strategy you followed in parts 'b' and 'c' above? Explain why and how.