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Interest rates have been on the rise over the past 12 months. Answer the following questions based on FRED data of the 5 year Treasury

Interest rates have been on the rise over the past 12 months. Answer the following questions based on FRED data of the 5 year Treasury Bond:

1.) If you purchased a 5-year bond on 4/1/2021, would the price of your bond have increased or decreased based on today's rate as of 4/1/2022? Explain your rationale in less than 150 words.

2.) Given that 1 year has passed, what type of risks were you exposed to as a fixed-income investor? (Name at least 2)

3.) You believe that interest rates will not remain the same from where they are currently. What is the name of the analysis can you perform to understand the impact on your existing bond portfolio? (Name 1)

4.) You have identified an opportunity to add more to your existing bond portfolio. You have narrowed your choices down two different 10 year bonds. Bond A has a convexity of 27 and Bond B has a convexity of 32. Which Bond should you buy?

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