Consider the following two-bond portfolio of option-free bonds;

*see attached table below

Required:

a)Without doing any calculations, which bond would have a higher duration

b)Assuming that Bond A is an option-free bond, calculate the bond's modified duration using Macauly's Duration. c)Assume that the duration of Bond A and B is 4.2 and 7.5 respectively; determine the duration of the portfolio.