Question: A pension fund has an average duration of its liabilities equal to 14 years. The fund is looking at 5-year maturity zero-coupon bonds and yield

A pension fund has an average duration of its liabilities equal to 14 years. The fund is looking at 5-year maturity zero-coupon bonds and yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the reto coupon bonds toimmunize if there are no other assets funding the plan? Multiple Choice 57145 42.16 35.711 2600 A pension fund has an average duration of its liabilities equal to 14 years. The fund is looking at 5-year maturity zero-coupon bonds and yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the reto coupon bonds toimmunize if there are no other assets funding the plan? Multiple Choice 57145 42.16 35.711 2600

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