A portfolio managers bond portfolio consists of bonds with the following tenors and duration:

Tenor 2 years 8 years 13 years

Duration 1.93 6.75 10.00

If the bond portfolio weights the 2-year bond at 20%, the 8-year bond at 50%, and the 13-year bond at 30%, what is the portfolios duration? If there was a parallel shift in the yield curve by 25bp, what would percentage change in the portfolios value be?The portfolio manager decides to change the portfolio to be weighted 40% in the 2-year bond and 60% in the 13-year bond. Did the portfolios interest rate risk decrease, increase or remain the same? Why?