Assume you have a portfolio of two zero coupon bonds. The first bond is 10 year bond with yield of 2% and the other bond is 5 year bond with a yield of 3%. Assume that the current market value of the first bond is 100, 000, 000 and the second bond is 200, 000, 000. 1. What is the duration and convexity of the portfolio? 2. Assume that the yield moves up by 50 bps. Calculate portfolio return through duration convexity formula. 3. Now calculate portfolio return directly using the bond price formula. Do you see a good fit?