Bond Math and Portfolios
A manager is considering two portfolios: a bullet portfolio and a barbell portfolio.
Portfolio A
Par	Maturity	Coupon	YTM
$9,550,000	5/1/19	4.20%	4.47%
$9,450,000	5/1/19	4.75%	4.57%
$20,325,000	5/1/27	6.15%	6.65%
Portfolio B
$19,050,000	11/1/22	5.75%	5.76%
$19,400,000	11/1/22	5.95%	5.80%
(a) Which portfolio is the bullet portfolio?
(b) What are the current prices of the bonds in both portfolios? Use 5/1/17 as the settlement date.
(c) What are the modified durations of the bonds in both portfolio?
(d) What are the durations of both portfolios?
(e) What is the cash yield of each portfolio?