As a fund manager at an investment management firm, you have created a portfolio of10,00,000in the following bonds:

Bond A: 10-year UK Govt bond offering 2% coupon, yielding 1.8%.

Bond B: 5-year Vodafone GBP bond offering 5% coupon, yielding 4.8%.

Bond C: 3-year Tesco GBP bond offering 5% coupon, yielding 5.2%.

Answer the following questions:

Compute the duration of the above-mentioned portfolio if the bonds A, B, & C are in the proportion 40:30:30. All bonds are bought in British pound (GBP) and offer semi-annual coupons. Assume face value of all bonds is1000.