1. Assume You have two bonds with the following data:

   Current MV of the first is 100$ Yield 2% maturing in 2 years

   Current MV of the first is 150$ Yield 3% Maturing in 3 years

   Assuming a continuous model what will be the returns of this portfolio if the first yield will rise by 50 bps ( new Yield is 2.5%) and the second yield rises by 1% ( new Yield is 4%)

   Hint: Calc the returns of the bond seperately and then do weighted average

   		-1.9%
   		-2.18%
   		-2.6%
   		NONE OF THE ABOVE