At the end of next 2 years, you need to pay $100,000 and $150,000 respectively. If...

 

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At the end of next 2 years, you need to pay $100,000 and $150,000 respectively. If the market interest rate is 6% per annum., what will be the duration of your payment obligation? ii. Suppose you plan to fully fund the obligation using both 6-month zero coupon bonds and perpetuities. Determine how much of each of these bonds (in market value) you will hold in the portfolio. At the end of next 2 years, you need to pay $100,000 and $150,000 respectively. If the market interest rate is 6% per annum., what will be the duration of your payment obligation? ii. Suppose you plan to fully fund the obligation using both 6-month zero coupon bonds and perpetuities. Determine how much of each of these bonds (in market value) you will hold in the portfolio.