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You examine a pension obligation for your company and would like to immunize it from interest rate movements. This obligation has a duration of 11.63
You examine a pension obligation for your company and would like to immunize it from interest rate movements. This obligation has a duration of 11.63 years, and if you only used two types of bonds, how much would you allocate to PERPETUITIES if your only other bonds available were 6 year, zero coupon bonds? Interest rates currently yield 6.50%
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