It is April 13, 2017. Consider the following Treasury yield curve: There are 2 portfolios, each with $100MM market value. Portfolio I: 5-year bullet. Portfolio II: 2-year/10-year barbell. Today, you invest the $100MM in each portfolio, so that the portfolios have the same duration. The trades settle tomorrow. How much is invested in the 2-year and in the 10-year? Suppose on October 14, 2017 the 2-year ytm increases 50bp and the 10-year ytm increases 25 bp. What are the price and yield for the 5-year that produce the same realized total rate of return for the bullet and the barbell for this 6-month investment period? 3.) Discuss the issues/complexities involved with solving these questions. It is April 13, 2017. Consider the following Treasury yield curve: There are 2 portfolios, each with $100MM market value. Portfolio I: 5-year bullet. Portfolio II: 2-year/10-year barbell. Today, you invest the $100MM in each portfolio, so that the portfolios have the same duration. The trades settle tomorrow. How much is invested in the 2-year and in the 10-year? Suppose on October 14, 2017 the 2-year ytm increases 50bp and the 10-year ytm increases 25 bp. What are the price and yield for the 5-year that produce the same realized total rate of return for the bullet and the barbell for this 6-month investment period? 3.) Discuss the issues/complexities involved with solving these questions