(20 points) You run a bond portfolio consisting only of a 3-year coupon bearing bond with 5% coupon rate. Your friend also runs a bond portfolio, but her portfolio consists only of a 3-year zero coupon bond. Currently the YTM of all bonds is 2%. Also, currently both portfolios have a market value of $10 million. (a) Compute Duration of your portfolio. (b) If the YTM were to decrease by 10 basis points (ie, from 2% to 1.9%), use the information from (a) to compute the change in the market value of your bond portfolio. (c) Without further computation, will your friend's portfolio be worth more or less than your portfolio after the YTM change mentioned in (b)? Explain how you come to your conclusion