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You manage a pension fund that provides retired workers with lifetime annuities. You determine that funds payouts are essentially a perpetuities of $1 million per

You manage a pension fund that provides retired workers with lifetime annuities. You determine that funds payouts are essentially a perpetuities of $1 million per year. The interest rate is 4%. You plan to fully fund the obligation using 5-year and 30-year maturity zero-coupon bonds. How much must you invest in the zeros to immunize your position?

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