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 of 5 years, and a perpetuity, each currently yielding 5%. a. How much of each bond will you hold in your portfolio? (Round your answers to 2 decimal places. Omit the "%" sign in your response.) b. How will these fractions change next year if target duration is now 9 years? (Round your answers to 2 decimal places. Omit the sign in your response.) Sandra Kapple presents Maria VanHusen with a description, given in the table below, of the bond portfolio held by the Star Hospital Pension Plan. All securities in the bond portfolio are noncallable U.S. Treasury securities. a. Calculate the "effective duration" (see Appendix 14A) of each of the following: i. The 4.75 percent Treasury security due 2031. (Round your answer to 2 decimal places.) ii. The total bond portfolio. (Round your answer to 2 decimal places.)