Q3. You own the following portfolio, which is a significant part of your wealth:

My portfolio Security	Face Value		Market Value		Term (years)		Coupon paid annually		Yield to maturity
US Treasury Bill		$20,000		$19,192		1		0%
Corporate Bond Rated Aa	$67,500		$60,359.2		8		10%		12.14%
Corporate Bond Rated B	$112,500		$89,968.9		10		12%		16.17%
Corporate Bond Rated Baa	$37,500		$39,735.2		5		15%		13.28%
Cash					$7,500

(a) What is the yield to maturity for the T Bill?

(b) Calculate the Macaulay duration of each of the securities, and the Macaulay duration of the portfolio?

(c) If your friend has an investment horizon of 3 years and wants to sell the portfolio at that time to use the principal + interest, what recommendations would you make regarding the composition of the portfolio?