You are a portfolio manager and have $100 million to invest. Per the guideline, you have to maintain the duration of your portfolio at around 4-5 years. You have a view that the yield curve will move up and flatten modestly in the coming three months. a. Construct the portfolio by choosing at most 2 bonds from the below table. Explain your choice. (10 points) Coupon Year to Maturity Modified Duration Bond A B 2 5 10 4% 4.60% 5% 1.8 4.1 7.2 b. Three months have passed and the curve has moved in accordance to your view. Do you need to adjust your portfolio now? Explain. (4 points) You are a portfolio manager and have $100 million to invest. Per the guideline, you have to maintain the duration of your portfolio at around 4-5 years. You have a view that the yield curve will move up and flatten modestly in the coming three months. a. Construct the portfolio by choosing at most 2 bonds from the below table. Explain your choice. (10 points) Coupon Year to Maturity Modified Duration Bond A B 2 5 10 4% 4.60% 5% 1.8 4.1 7.2 b. Three months have passed and the curve has moved in accordance to your view. Do you need to adjust your portfolio now? Explain. (4 points)