This question considers the impact of a twist (flattening and steepening) in the yield curve on two bonds investment strategies. Both investments have equal Macaulays

This question considers the impact of a twist (flattening and steepening) in the yield curve on two bonds investment strategies. Both investments have equal Macaulay’s duration and equal present value. The first portfolio is designed as a bullet (100% allocation to the mid-maturity in the yield curve) and the other as a barbell (allocation split between the short and the long maturities in the yield curve).