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A liability of 100,000 is due in 5 years. This liability is to be fully immunized at = 10 by means of two zero-coupon bonds,
A liability of 100,000 is due in 5 years. This liability is to be fully immunized at = 10 by means of two zero-coupon bonds, one due in 3 years and the other due in 8 years. What amounts of these two bonds must come due at the two respective dates (3 and 8) to fully immunize this liability? (6 points)
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