bond	a	b	c	d
settlement date	1/1/2020	1/1/2020	1/1/2020
maturity date	6/1/2027	1/1/2028	1/1/2025
coupon	6%	0%	4.375%	4%
yield	5.875%	6.375%	4.875%	6%
frequency	2	1	4
basis	0	0	0
duration	6.07	8	4.51	17.67

Assume a financial institution owns the four assets from question 1 in the amounts indicated in the table below.

Asset	Face value of holdings	Market value of holdings
Interest only loan	20,000,000	20,180,042
Zero coupon loan	15,000,000	8,922,737
Amortized loan	20.000,000	19,751,496
Perpetuity	12,000,000	8,200,000

a. What is the duration of the financial institutions assets?

b. Rank the assets by increasing interest rate risk (lowest to highest).

c. Rank the contribution of each asset to the financial institutions interest rate risk (least contribution to greatest contribution).

d. Comment on the difference in rankings in parts b and c.