16-6

You are managing a portfolio of $1 million. Your target duration is 10 years, and you can Invest in two bonds, a zerocoupon bond with maturity of five years and a perpetulty, each currently ylelding 10.0%. a. What weight of each bond will you hold to Immunize your portfollo? (Round your answers to 2 decimal places.) b. How will these weights change next year If target duration Is now nine years? (Round your answers to 2 decimal places.)