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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

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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 five years, and a perpetuity, each currently yielding 5%. Help Save & Exit o. How much of () calculations. Round your answers to 2 decimal places.) the zero-coupon bond and (i) the perpetuity will you hold in your portfolio? (Do not round intermediate ero-coupon bond b. How will these fractions change next year if target duration is now nine years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) bond Zero-c Perpetuity bond K Prey10 of 10

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