i) Calculate the duration of LETS pension portfolio and assess the interest rate risk of the portfolio versus the benchmark?

ii) Calculate the spread duration of Woodlands Groove portfolio and evaluate the credit risk of the portfolio versus the Singapore mortgages?

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