What is the weight on the 5-year zero-coupon bond

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My pension plan will pay me $10,000 once a year for a 10-year period. The first payment come in at the end of 6th year from now. The pension fund wants to immunize its position. If the pension plan uses 5-year zero-coupon bond and 20-year zero coupon bond to construct the immunization position, what is the weight on the 5-year zero-coupon bond? Suppose the interest rate is 10%.

Reference no: EM132515898

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