Suppose you are holding a portfolio of bonds that consists of the following four bonds. Portfolio Weight (%) 30 A. B. Bond A $1,000 twenty-year 15% coupon bond with the interest rate of 12% A $1,000 eight-year discount bond with the interest rate of 7% A $1,000 ten-year 12% coupon bond with the interest rate of 9% A $1,000 five-year 4% coupon bond with the interest rate of 5% 20 15 D. (Note) Round your answers to 2 decimal places. Calculate the durations of the four bonds in the portfolio. Using a spreadsheet, construct a table for each bond, such ABLE 1 in Web Appendix to Chapter 4, and attach the spread sheet tables to your answer sheet. Bond Duration &.12 2.00 6.64 4.62 4.62 2. What is the duration of your bond portfolio? Now suppose market interest rates have risen over the course of the year. Specifically, the bonds in your portfolio experienced the following changes. Interest Rate a Year Ago (%) Interest Rate Now (%) 12 14 10 5.5 Suppose you are holding a portfolio of bonds that consists of the following four bonds. A. B. C. D. Bond A $1,000 twenty-year 15% coupon bond with the interest rate of 12% A $1,000 eight-year discount bond with the interest rate of 7% A $1,000 ten-year 12% coupon bond with the interest rate of 9% A $1,000 five-year 4% coupon bond with the interest rate of 5% Portfolio Weight (%) 30 20 15 35 2. What is the duration of your bond portfolio