Please use ONLY an Excel spreadsheet for the solutionsno handwritten ones. 6. You...

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Finance

imagePlease use ONLY an Excel spreadsheet for the solutionsno handwritten ones.

6. You are managing a portfolio of $1.0 million. Your target duration is 18 years, and you can choose from two bonds: a zero-coupon bond with maturity seven years and a perpetuity, each currently yielding 3.5%. What portion of your portfolio should be the zero-coupon bond and what portion should be the perpetuity

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