Question: (d) How would you hedge a long position in the note against relatively large parallel shifts in the yield curve using the two following bonds

(d) How would you hedge a long position in the note against relatively large parallel shifts in the yield curve using the two following bonds (assume that the yield required on both bonds is 5% as well)? (Show all details) (2 marks) Bond Price Modified Duration Convexity (in years) (in years 1 $110 4.27 22.84 2 $120 8.75 29.76

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