You are managing a portfolio of $1 million. Your target duration is 10 years, and you can invest in two bonds, a zero-coupon bond with maturity of five years and a perpetuity, each currently yielding 5.6%.

a. What weight of each bond will you hold to immunize your portfolio? (Round your answers to 2 decimal places.)
Zero-Coupon Bond . %
Perpetuity Bond %
b. How will these weights change next year if target duration is now nine years? (Round your answers to 2 decimal places.)
Zero-Coupon bond . %
Perpetuity bond . %

Label each of the following statements true, false, or uncertain. explain your choice carefully. a. workers benefit equally from the process of creative destruction. b. in the past two decades, the real wages of low-skill u.s. workers have declined relative to the real wages of high-skill workers. c. technological progress leads to a decrease in employment if, and only if, the increase in output is smaller than the increase in productivity. d. the apparent decrease in the natural rate of unemployment in the united states in the second-half of the 1990s can be explained by the fact that productivity growth was unexpectedly high during that period.