You are the manager of a large portfolio of liabilities comprising 90-day commercial paper, along with 3-, 6- and 10-year bonds. New advice suggests that the yield curve is likely to make a parallel shift downwards, a move that is apparently not currently predicted by the market. (a) Outline how you would alter your portfolio to take advantage of the predicted move in the yield curve. Broadly, what will be the impact of this portfolio restructuring on the portfolio duration. (b) Outline how you would use futures to take advantage of the predicted move in the yield curve. Assume that both 3- and 10-year bond futures are available to you.