Question: please help me solve this. Q2. Five Year rate sero is currently trading at 4 W yield and 20 year zero trading at 3.5% rate

please help me solve this. please help me solve this. Q2. Five Year rate sero is currently

Q2. Five Year rate sero is currently trading at 4 W yield and 20 year zero trading at 3.5% rate Q2a. What is the duration 5y and 20y bond respectively (5 points)? Q2b. If you short 10 million of 20Y bond, how mamy dollars of long position do you need to take in the 5Y in order to offuet the dollar duration rizk? (5 poiots) Pase 4 Q2e. Yield curve steepened: 5 yld went up by 20 bps and 30 yla went up by 25 bpt. What is your profit or last [Pnu) for the above position baed on duration? (S points)

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