Bond Portfolio Management Problem You are working for a small bond portfolio manager. Your portfolio consists of the following Australian CGS: 10yr semi-annual coupon paying bond with a coupon rate of 3% p.a and a YTM of 3.7%. (Hold 3 of these bonds) 5yr semi-annual coupon paying bond with a coupon rate of 2.5% p.a and a YTM of 3.4%. (Hold 5 of these bonds) 3yr semi-annual coupon paying bond with a coupon rate of 2.0% p.a and a YTM of 3.3%. (Hold 3 of these bonds) With all three bonds having a face value of $100000 You have limits on the duration of your portfolio. 

The duration of your portfolio must be between 4 and 6 years. Given your view on interest rates, 

how would you want to change the duration of your portfolio? 

Provide an explanation to support your decision.