You examine a pension obligation for your company and would

Last updated: 7/12/2022

You examine a pension obligation for your company and would like to immunize it from interest rate movements. This obligation has a duration of 14.19 years, and if you only used two types of bonds, how much would you allocate to PERPETUITIES if your only other bonds available were 7 year, zero coupon bonds? Interest rates currently yield 0.055 0.6332 0.5902 0.6582 0.6126 0.5661