A Sydney-based fixed-income portfolio manager is considering the following Commonwealth of Australia government bonds traded on the ASX (Australian Stock Exchange): The manager is considering portfolio strategies based upon various interest rate scenarios over the next 12 months. She is considering three long-only government bond portfolio alter-natives, as follows: Bullet: Invest solely in 4.5-year government bonds Barbell: Invest equally in 2-year and 9-year government bonds Equal weights: Invest equally in 2-year, 4.5-year, and 9-year bonds c. An economic slowdown is expected to result in a 25bp decline in Australian yield levels. Which portfolio alternative will experience the largest gain under this scenario? d. Which portfolio has the least exposure to convexity? A Sydney-based fixed-income portfolio manager is considering the following Commonwealth of Australia government bonds traded on the ASX (Australian Stock Exchange): The manager is considering portfolio strategies based upon various interest rate scenarios over the next 12 months. She is considering three long-only government bond portfolio alter-natives, as follows: Bullet: Invest solely in 4.5-year government bonds Barbell: Invest equally in 2-year and 9-year government bonds Equal weights: Invest equally in 2-year, 4.5-year, and 9-year bonds c. An economic slowdown is expected to result in a 25bp decline in Australian yield levels. Which portfolio alternative will experience the largest gain under this scenario? d. Which portfolio has the least exposure to convexity