How much of the porfolio value in percentage

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You need to create a portfolio with a duration of 6 years. You can use a 3 year zero-coupon bond and a perpetuity which pays $80 each and every year forever and has yield of 10%.

How much of the porfolio value in percentage you would have to invest in the zero-coupon bond, and how much in the perpetuity ?

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Reference no: EM13224200

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