22) Consider the following two bond portfolio of option free bonds, [9 Marks Years to maturity Coupon rate Par value Yield to maturity Par amount owned Market value Bond A 5 years 5% 1000 8% R3,45 million R30 367.59 (in 000's) Bond B 10 years 5% 1000 6% R2 million R18 528 (in 000's) Required: I a) Without doing any calculations, which bond would have a higher duration b) Assuming that Bond A is an option-free bond, calculate the bond's modified duration using Macauly's Duration c) Assume that the duration of Bond A and B is 4.2 and 7.5 respectively, determine the duration of the portfolio