Use the following information to answer questions 1 to 4 . A portfolio contains 2 bonds in the following proportion and with the following features - Bond J is 30% of the portfolio with a 8.5% annual coupon maturing 5 years from today with a current yield of 6.5% - Bond G is 70% of the portfolio with a 5.5% annual coupon maturing 6 years from today with a current yield of 6.9% All rates are expressed on an effective annual basis. For duration hedging purposes, a Treasury bond maturing 5 years from today, with a 2.8% coupon, currently trading at par is available. Assume that the duration being referred to as is the Macauley duration. 1. What is Bond J's duration? 2. What is Bond G's duration? 3. What is the duration of the combined portfolio? 4. For every dollar in a LONG position in the combined portfolio, what amount of Treasury bills will need to be sold SHORT for the portfolio to be 100% duration hedged? 5. A portfolio manager has a portfolio worth $200 million, $125 million of which is equity and $75 million is borrowed. If the return on the invested funds is 9.7%, and the cost of borrowed funds is 6.3%, calculate the return on the portfolio. 6. A manager's portfolio is worth $250 million, $150 million of which is in Bond A and $100 million of which is in Treasuries. If the duration of the portfolio is 6.5 , and the duration of Bond A is 1.6 , calculate the duration of the Treasuries