you purchase US Treasury securities to fund an obligationthat is due in 5 years. Briefly discuss (1 or 2 sentences) the specific form(s) of interest raterisk that you face for each of the following specific bond investment strategies:(a).You purchase a 10-year Treasury note with a 4% coupon rate. You will liquidateyour position (sell the bond) after five years (b).You purchase a Treasury STRIP security with five years to maturity and you willhold this security until maturity.(c).You purchase a Treasury note with a 3% coupon rate and five years to maturity. Youwill hold this security until maturity.

bond portfolio manager recently determined that the duration of her portfolio equals 7.She is concerned about a potential increase in interest rates, and is evaluating the potentialmerits of reducing the duration of her portfolio. Conduct a what if analysis that quantifiesthe implications on her portfolio of a potential 50 basis point increase in market yields,assuming that the current yield is 5%. Quantify the benefit that would be associated withreducing her portfolio duration from 7 to 5 today, should this rate change materialize.Discuss potential costs associated with reducing her portfolio duration.