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You are managing a portfolio of $10.0 million. Your target duration is 15 years, and you can choose from two bonds: 8% semiannual coupon bond

You are managing a portfolio of $10.0 million. Your target duration is 15 years, and you can choose from two bonds: 8% semiannual coupon bond with four years until maturity and a perpetual bond, each currently yielding 4%. How much of the coupon bond and the perpetuity will you hold in your portfolio?

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