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A pension fund has an average Macaulay duration of its liabilities equal to 15 years. The fund is looking at 3-year maturity zero coupon bonds

A pension fund has an average Macaulay duration of its liabilities equal to 15 years. The fund is looking at 3-year maturity zero coupon bonds and 3% 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?

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