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Assume today is July 1, 2022. Your firm is responsible for managing a $100 Million portfolio. For Interest Rate Risk reasons, your target Duration is
Assume today is July 1, 2022. Your firm is responsible for managing a $100 Million portfolio. For Interest Rate Risk reasons, your target Duration is 9 years; you will hit this goal by allocating the portfolio between 4-year Zero Coupon Bonds and Perpetuities, each yielding 8%. Your firm has a policy to annually re-balance portfolios to maintain proper management of Interest Rate Risk. As of 7/1/2023, what is your allocation to Zero Coupon Bonds?
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