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You are managing a portfolio of $1.0 million. Your target duration is 18 years, and you can choose from two bonds: a zero- coupon bond

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You are managing a portfolio of $1.0 million. Your target duration is 18 years, and you can choose from two bonds: a zero- coupon bond with maturity seven years and a perpetuity, each currently yielding 2%. How much of (i) the zero-coupon bond and (ii) the perpetuity will you hold in your portfolio? (Do not round intermediate calculations. Round your answers to 2 decimal places.) zero-coupon: 75%; perpetuity: 25% zero-coupon: 35%; perpetuity: 65% O zero-coupon: 65%; perpetuity: 35% zero-coupon: 15%; perpetuity: 85%

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