own a 4-year 11% coupon bond with 6 yet interest rates on both investments are 8%. You duration of 4.5% annual coupon bond wears to mature currently worth $4 mil. You also tomorrow, what is yours. If the market interest rates were to increase by 10 basis point your total portfolio gains/loss? for tax reason shares of stock currently priced at $40 per share ready to be sold in January cost. January. To hedge for downside risk, you want to enter into a collar to save hedging price of $35 are sells with a strike price of $45 are selling at $2; and January puts with a strike proceeds from are selling at $3. What will be your portfolio value in January (net of the proceeds from the options) if the stock price ends up at (a) $31 ? (b) $49 ? (Answer both a and b)