Assume that you have approximately RM500,000 to invest in a portfolio of 3 bonds Part A Choose any combination of Three MYR-denominated bonds to form a portfolio

Fixed Deposit Alternative - 55% RM275,000 - MGII 4.245% 30Sep2030 Govt (MYR) Stable Income Seeker - 30% RM150,000 - CENESE 5.300% 23Dec2026 Corp (MYR) High Yield Seeker - 15% RM75,000 - DJCMK 7.000% Perpetual Corp (MYR)

1) Justify the sensitivity of interest rates on portfolios value with appropriate illustration. (10 Marks )