A pension plan is obligated to make payment of $1 million at the end of each of next 10 years, respectively. Find the duration of the pension fund's obligation when the relevant market rate is 10%.

You would like to immunize the obligation in the above question eith 3 year zero-coupon bonds and peroetuities. What should be the weights for coupon bonds and perpetuities repectively? (The interest rate is still 10%)