yield is very important due to the fact that you must be able to exceed the percentage yield payout to your customers by just 1.0%, but the current yield you are paying them is 3.0%. Safety of principle and volatility are less important than duration structure. The Fund must match its payout duration with the companys liability structure as closely as possible:

10% - 1 Year

10 % - 3 Year

10% - 5 Year

10% - 7 Year

20% - 10 Year

20% - 15 Year

20% - 20 Year

You must invest around $100,000,000 into at least 15 different investments in at least 3 different investment categories.

1. Explain and demonstrate mathematically how and why you constructed your portfolio to meet the above standards. Make sure you compare the importance and contrasts between; yield, risk/return, duration, and convexity for your particular investment strategy

2. Demonstrate what happens to the value of both every individual fixed income investment and the entire portfolio (both in total $ and as a percentage of the portfolio value) when interest increases by 1%.

3. Demonstrate what happens to the value of both every individual fixed income investment and the entire portfolio (both in total $ and as a percentage of the portfolio value) when interest decrease by 1%