A Pension Fund Has an Average Duration of Its Liabilities

question 30

Multiple Choice

A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 5-year maturity zero coupon bonds and 4% yield perpetuities to immunise its interest rate risk. How much of its portfolio should it allocate to the zero coupon bonds to immunise if there are no other assets funding the plan?

• A)52%
• B)48%
• C)33%
• D)25%

Understand the exocrine and endocrine functions of the pancreas.

Identify sources and roles of pheromones in human physiology.

Comprehend the chemical communication mechanisms between same-species individuals.

Distinguish between Type 1 and Type 2 diabetes and their characteristics.

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