A portfolio consists of two 10-year investments: a bond that pays 500 at the end of each year and 10,000 redemption value and an annuity that pays 1,500 at the end of each year.

Using a yield rate of 5%

	Bond	Annuity
Price	10,000	11,583
Modified duration	7.7217	4.8563
Convexity	74.9977	35.6023

Find the modified duration and convexity of the portfolio.

A.	Modified duration of 6.39 and convexity of 56.74

B.	Modified duration of 6.18 and convexity of 53.86

C.	Modified duration of 6.18 and convexity of 56.74

D.	Modified duration of 6.39 and convexity of 53.86 please dont copy the other answers in chegg and dont use excel to solve this problem.