You are examining a pension obligation for your company and would like to immunize it from interest rate movements. This obligation has a duration of 12.38 years, and if you only used two types of bonds, how much would you allocate to perpetuities if your only other bonds available were 6-year, zero coupon bonds? Interest rates currently yield 0.07.
0.6283
0.6577
0.7165
0.6871
0.6112