Click to see additional instructions Duration matching with rebalancing after a big market move. A pension fund must make two fixed payments (2 liabilities). The first is payment of $100M in 10 years. The second is a payment of $50M in 30 years. The current market interest rate is 3% at all maturities. The fund has $100M available to invest. The fund can allocate its assets between a 5-year zero-coupon and a 20- year zero-coupon bond. The fund wants to stabilize its equity/assets ratio. 2. What fraction of assets should be invested in the 20 year bond? Answer: % (round answer to nearest two decimal places) 41