Bond portfolio has a target duration

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The manager of a $30 million bond portfolio has a target duration of 13 years for a portfolio with a current duration of 18 years. The manager can add zero coupon bonds with 15 years to maturity, perpetuities with a 15% YTM, or both to the portfolio to reach the target duration. What $ amount should be invested in each asset?

Reference no: EM13911238

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