- You are managing a portfolio of 2 bonds, each with a $1,000,000 par value. The portfolio originally had a duration of 4.0 but due to interest rate changes, that has fallen to 2.987. The portfolio values are now as follows: 1) ii) Security Bond A Bond B PORTFOLIO Market Value 876,000 1,342,300 2,218,300 Duration 4.975 1.689 2.987 Dollar Duration $43,581 $22,671 $66,252 What % of the portfolio should be invested in bonds A & B in order to rebalance the portfolio back to its original duration (without having to add additional funds)? (2 marks) After you've rebalanced, what will be the Money Duration (aka Dollar Duration) of the portfolio? (2 marks)