Please use at least 3 decimals to calculate all the steps and make sure you answer all the questions. Assume that you are a bond fund manager. Now, you have three bonds in your portfolio (A, B, and C) Bond Par value Duration Coupon Time to Coupon ($million) (annual %) maturity frequency (years) A 2.1 X 4 3 Annual B 0.75 4.49 6 5 Semi-annual C 3 5.74 6.5 7 Quarterly Bond yield to maturity is 5 percent for bond A. What is the portfolio modified duration given the portfolio yield to maturity is 6 percent? What will be the portfolio value if we expect that the yield goes down by 120 basis points (given that the par value is the current value of the portfolio)? Please calculate this based on both duration and convexity. Assume that the convexity is the square of portfolio modified duration