You are managing a portfolio of $1 million. Your target duration is 10 years, and you can choose from two bonds: a zero-coupon bond with maturity 5 years, and a perpetuity, each currently yielding 5%. How much of each bond will you hold in your portfolio? 5-year zero-coupon bond: _____ % Perpetuity: _____ % How will these fractions change next year if target duration is now nine years? 5-year zero-coupon bond: _____ % Perpetuity: _____ %