A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 10-year maturity zero-coupon bonds and 5% yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the zero-coupon bonds to immunize if there are no other assets funding the plan?

Question 23 options:

	37.5%
	40%
	43%
	55%