An 8% coupon bond with 20 years to maturity selling at par has duration of 10.3 years. A 17% coupon bond with 30 years to maturity and a yield to maturity of 8% has duration of 10.1. a. Calculate the percentage change in price of these two bonds when the yields move up by one basis point (1 basis point is 1/100 of a percent). b. Are longer maturity bonds riskier than shorter maturity bonds? A financial institution plans to make an investment in 2 years and 9.33 months (or 2.777 years). The institution holds an asset portfolio of 8%, $1,000, 3-year coupon bonds that are trading at a yield-to-maturity of 10%. The bonds pay interest annually. The manager believes that the assets are immunized against interest rate changes. a. Is the portfolio immunized at the time of bond purchase? b. Will the portfolio be immunized one year later? c. Assume that 1-year zero-coupon bonds with 8% YTM will be available in one year. What proportion of the original portfolio should be placed in these bonds to rebalance the next year