Suppose you are a money manager who manages a portfolio of two bonds, A and B. Bond A is a 5% semi-annual coupon bond with 5 years to maturity; its par value is $1000; the YTM is 7%; there are 10,000 units of bond A held in the portfolio. Bond B is a 3-year 6% semi-annual coupon bond, $500 par value, and its YTM is 8%; you hold 5,000 units of Bond B. (You must keep 5 decimal places in all steps, eg. $2.1234)

A. What is the duration of Bond A and Bond B? (Use excel)

B. If the YTM for both bonds increases by 50 basis points, what is, in dollar amount, the change in the value of the portfolio? You must use modified duration method to solve this problem.