1. (6 points total) Take a bond portfolio whose modified duration is -5; the portfolio's value is $2,000,000. How much will the portfolio value change if the yield rises by 1 basis point (0.01% or 0.0001)? (Formula 1) (3 points) b. If you want to hedge this portfolio against an increase in yield (decline in value) using a different bond whose modified duration is -10, will you buy or sell this hedge bond, and how much in value (i.e. not principal amount) will you buy or sell? (Formula 2) (3 points)