Youve just been promoted to manage your own bond mutual fund, and youre thinking of restructuring the portfolio. Currently, the fund owns four types of bonds; A, B, C, and D. These four bonds have current market values of $225MM, $300MM, $75MM, and $450MM, and Macauley durations of 9.50 years, 4.25 years, 2.50 years, and 13.00 years, respectively. The average yield for the bonds in the portfolio is currently 7%. If interest rates suddenly rise by 120 basis points (bp) for each bond, what do you estimate the market value of this bond portfolio will be? Suppose your boss tells you that no matter what, you better not lose more than 4% of the portfolios value. If you actually expect rates to rise by 120bp, construct a rebalanced portfolio using only these 4 bonds that guarantees you will lose no more than 4% of the portfolios value. (You must be fully invested; no cash holdings).