Suppose that the change in a portfolio value for a onebasispoint shift in the 1, 2, 3, 4, 5, 7, 10, and 30year rates are (in $ millions) -3, -2, -1 , +1, +3, +5, +7, and +8, respectively. Estimate the delta of the portfolio with respect to the first three Principal Component factors of the following Table. Quantify the relative importance of the three factors for this portfolio.

	Factor loadings
	PC1	PC2	PC3	PC4	PC5	PC6	PC7	PC8
1year	0.22	-0.50	0.63	-0.49	0.12	0.24	0.01	-0.03
2year	0.33	-0.43	0.13	0.35	-0.21	-0.67	-0.10	0.24
3year	0.37	-0.27	-0.16	0.41	-0.10	0.31	0.41	-0.56
4year	0.39	-0.11	-0.26	0.17	-0.02	0.55	-0.42	0.51
5year	0.40	0.02	-0.36	-0.27	0.60	-0.28	-0.32	-0.33
7year	0.39	0.19	0.195	-0.34	0.01	-0.10	0.69	0.42
10year	0.38	0.37	0.07	-0.31	-0.68	-0.04	-0.28	-0.28
30year	0.31	0.55	0.58	0.40	0.33	0.02	0.01	0.03
	Standard deviation of factor scores
	PC1	PC2	PC3	PC4	PC5	PC6	PC7	PC8
	17.55	4.77	2.08	1.29	0.91	0.73	0.56	0.53