es Problem 11-19 (Algo) You are managing a portfolio of $1.0 million. Your target duration is...

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es Problem 11-19 (Algo) You are managing a portfolio of $1.0 million. Your target duration is 12 years, and you can choose from two bonds: a zero-coupon bond with maturity five years and a perpetuity, each currently yielding 5%. Required: a. How much of (1) 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 bond Perpetuity bond % % b. How will these fractions change next year if target duration is now eleven years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero-coupon bond Perpetuity bond % % es Problem 11-19 (Algo) You are managing a portfolio of $1.0 million. Your target duration is 12 years, and you can choose from two bonds: a zero-coupon bond with maturity five years and a perpetuity, each currently yielding 5%. Required: a. How much of (1) 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 bond Perpetuity bond % % b. How will these fractions change next year if target duration is now eleven years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero-coupon bond Perpetuity bond % %