Bond 1- Term to maturity is 3 years, Face value is 100, coupon rate is 2.5%, yield is 3.54%, and portfolio holding is 175 million; Bond 2: Term to maturity is 10 years, Face value is 100, coupon rate is 2.75%, yield is 4.07%, and portfolio holding is 125 million. 

1. Calculate the price (per hundred face value), effective duration, convexity and DV01 of the each of the 2 bonds.

2.  Using the Holdings information, calculate the market value, yield, duration and DV01 of the portfolio.

3. Assume that the yields on the securities change in accords with two scenarios, A and B. Scenario A initially increase by 1.50% each and then Scenario B sees the yield on the 3 Year bond decreases by 2.10% and that on the 10 Year Bond increase by 1.05% and:
a. For both scenarios A and B, calculate the change in portfolio yield and,  using the duration of the portfolio, estimate the portfolio market value change in response to the change in yields,
b. For both scenarios A and B, calculate the actual market value change and compare the result to the estimate derived in part a above, commenting on the cause of any observed differences.