10. Assuming semi-annual compounding and that the yield curve is flat at 6.40%pa nominal. Consider a bullet portfolio with a face value of $80,000 and a maturity of 19 years. A barbell portfolio is to be created which has the same market value and the same dollar duration as this bullet portfolio. Assume that this barbell portfolio has a weight of w_s in 9-year zero-coupon bonds

10. Assuming semi-annual compounding and that the yield curve is at at 6.40%pa nominal. Consider a bullet portfolio with a face value of $80,000 and a maturity of 19 years. A barbell portfolio is to be created which has the same market value and the same dollar duration as this bullet portfolio. Assume that this barbell portfolio has a weight of w_s in 9-year zero-coupon bonds and a weight of w_l in 29 year zero-coupon bonds. Which of the following statements is incorrect? J [ Select] The market value of the barbell portfolio is $24,169.16 The modified duration of the barbell portfolio is 18.41 The standardized convexity of the barbell portfolio is 394.83 The standardized convexity of the bullet portfolio is 347.88 9w_s + 29w_l =19