lliot Karlin is a 35-year-old bank execuTve who has just inherited a large sum of money. Having spentseveral years in the bank's investments department, he's well aware of the concept of duraTon anddecides to apply it to his bond porolio. In parTcular, Elliot intends to use $1 million of his inheritance topurchase four U.S. reasury bonds:An 8.5%, 13-year bond that's priced at $1,045 to yield 7.47%.A 7.875%, 15-year bond that's priced at $1,020 to yield 7.60%.A 20-year stripped reasury that's priced at $202 to yield 8.22%.A 24-year, 7.5% bond that's priced at $955 to yield 7.90%.DirecTons:

1)Find the duraTon and the modied duraTon of each bond.

2)Find the duraTon of the whole bond porolio if Ellio puts $250,000 into each of the four U.S.reasury bonds.

3)Find the duraTon of the porolio if Elliot puts $360,000 each into bonds 1 and 3 and $140,000each into bonds 2 and 4.