1. A portfolio manager evaluates two different portfolios, each consisting of two bonds as shown below:

Portfolio N
Bond Duration		4	6
Bond Weight		50%	50%
Portfolio W
Bond Duration	2			8
Bond Weight	50%			50%

The portfolio develops four different scenarios for a yield curve change:

	Yield Change
	2 Duration	4 Duration	6 Duration	8 Duration
Scenario 1	+0 bps	+10 bps	+15 bps	+25 bps
Scenario 2	+50 bps	+30 bps	+20 bps	5 bps
Scenario 3	+15 bps	+15 bps	+15 bps	+15 bps
Scenario 4	25 bps	15 bps	10 bps	0 bps

Using Excel, estimate the change in value for each portfolio (N or W) for each of the scenario and determine which portfolio is most likely to outperform in each scenario.