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You manage a pension fund with payments of $5M a year resembling a perpetuity. You immunize the pension fund liability by purchasing two zero coupon

You manage a pension fund with payments of $5M a year resembling a perpetuity. You immunize the pension fund liability by purchasing two zero coupon bonds, one maturing in 5 years, and the other maturing in 25 years. The yield on both bonds and the perpetuity is 8%. How much money should you invest today in the 25 year zeros?

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