The Admiral Shares of the Vanguard Long-Term Bond Index Fund (symbol: VBLAX) had net assets of $8.6 Bn as of 3/10/23.

a) Using the Internet or some other public source of information, determine the following:

i)The Fund's return for calendar 2022.

-27.22%

Year	Capital return by NAV	Income return by NAV	Total return by NAV	Benchmark1
2022	-29.79%	2.57%	-27.22%	-27.09%

ii)The Fund's average duration and yield to maturity as of  3/31/23?

Average duration	14.4 years
Yield to maturity	4.9%

 

b)Assume the Fund had interest earnings of 3% during all of 2022 and its average duration has been constant since 1/1/22. Given your answers top arts a) and b) above, approximately how far did the general level of interest rates move and in what direction did they move during 2022 to produce the over all return result you determined in part a)?

 

c)Given your answer in part b) above, approximately how long will it take the Fund to earn back its result if interest rates remain unchanged in the future?