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An insurance company had an obligation due in 9 years. TO immunize against interest rate movements, the company plans to use 6-year zero-coupon bond and

An insurance company had an obligation due in 9 years. TO immunize against interest rate movements, the company plans to use 6-year zero-coupon bond and 10% yeild perpetuities. How much of its portfolio should the company allocate to the zero coupon bond?

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