How to assign persistent MAC address to a virtual function on a KVM guest?

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Issue

An SR-IOV capable Ethernet card is being used on a KVM host.KVM guests use some of the virtual functions(VF).
The VF interfaces get randomly generated MAC addresss on every reboot.How can a persistent MAC address be assigned to a virtual function being used on a KVM guest?
What does the interface type=hostdev element in the guest configuration of a KVM guest signify?

Environment

Red Hat Enterprise Linux 6.3
KVM

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