b) Reuel Capital case study (25) Joseph Mhofu is a fixed income portfolio manager for Reuel Capital. Mhofu is reviewing the portfolios of several pension clients that have been assigned to him to manage. Two of these portfolios are Woodlands Groove and LETS pension plan has the following characteristics: Bond index benchmark for Woodlands Groove bond portfolio has an effective duration of 4.16. (i) Calculate the duration of Woodlands Groove bond portfolio and asses the interest rate risk of the portfolio versus the benchmark. (ii) Calculate the spread duration of LETS pension plan portfolio and evaluate the credit risk of the portfolio versus the Singapore mortgages. (4)