You are managing a portfolio of $1.7 million. Your target duration is 10 years, and you can choose from two bonds: a zero-coupon bond with maturity 6 years, and a perpetuity, each currently yielding 10%. How much of each bond will you hold in your portfolio? Zero-coupon bond % Perpetuity bond % How will these fractions change next year if target duration is now nine years? Zero-coupon bond % Perpetuity bond %