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1 0 . You have a single liability that requires a payment of 2 0 0 , 0 0 0 at time 7 . You

10. You have a single liability that requires a payment of 200,000 at time 7. You want to create an immunized portfolio by buying two zero-coupon bonds that will mature in 4 years and 10 years respectively. The valuation interest rate for the liability and for both assets s*i_{0}=6%. Find the amounts of the two bonds that you will buy, and verify that the portfolio is immunized.

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