(a)On the 1^st July 2022, you bought the following portfolio of Commonwealth Government bonds. Calculate the amount you paid for each instrument per $100 face value and thus the total for the equally weighted portfolio: Use the yields given.

Title	Treasury Bonds	Treasury Bonds	Treasury Bonds	Treasury Bonds	Treasury Bonds	Treasury Bonds
	Treasury Bond 137 2.75% 21-Feb-2024	Treasury Bond 142 4.25% 21-Apr-2026	Treasury Bond 154 2.75% 21-Nov-2029	Treasury Bond 165 1.75% 21-Nov-2032	Treasury Bond 144 3.75% 21-Apr-2037	Treasury Bond 162 1.75% 21-Jun-2051
01-July -2022	2.294	2.938	3.745	3.497	2.098	1.464
31-June-2023	2.511	2.130	3.806	2.593	3.954	2.500

(b)Calculate the price of the instruments if they were sold on 31^st June 2023

(c)Calculate the holding period yield for each instrument if you sold them on the 30 ^th of June 2023. Assume the reinvestment rate is 1.548% p.a. for the bonds.

(d)What would be the holding period yield for the portfolio as a whole over the same period? Comment on your answer

(e)Using a table format, manually calculate the duration and convexity for the 3.75% 21^st April 2037 Treasury Bond 144 on the 21^st April 2023, if the yield was 3.611%.

(f)Using a spreadsheet (Excel) and its duration formula, calculate the duration for all the bonds as at 30^th.of June 2023.

(g)What is the duration for the portfolio as at 30^th of June 2023?

(h)If the portfolio had 44-day Bank Accepted bill with a yield of 1.158%, what would be the bills duration? Explain you answer.

(i) Comparing the two sets of rates, what can you say about the term structure? (Compare A&B by using a chart and calculate the forward rate.)