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A pension plan has an obligation to pay NOK 1 0 , 0 0 0 once a year during a 1 0 - year period,

A pension plan has an obligation to pay NOK 10,000 once a year during a 10-year period, beginning
5 years from now. The interest rates are flat at 10%
a) what is the duration of this obligation?
b) If the pension fund intends to use a 5-yr and 20-yr zero coupon bonds to immunise this position,
how much should be placed in each bond?

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