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a pension fund has an average duration of its liabilities equal to 16 years. the fund is looking at 6 year maturity zaro coupon bonds

a pension fund has an average duration of its liabilities equal to 16 years. the fund is looking at 6 year maturity zaro coupon bonds and 4% 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 assests funding the plan?

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