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You have an investment time horizon of 8 years. You have the choice between 2 securities , each with a 1 0 % Yield to
You have an investment time horizon of years. You have the choice between securities each with a Yield to Maturity. The first is a year, zero coupon bond. The second is a perpetuity. What percentage of your bond portfolio should you place in the zero coupon bond to protect your portfolio from interest rate fluctuations? Answer in decimal form, rounded to two decimal places.
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