Question: Q2. Five Year rate zero is currently trading at 4% yield and 20 year zero trading at 3.5% rate. Q2a. What is the duration 5y

Q2. Five Year rate zero is currently trading at 4% 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 many doliars of long position do you need to take in the 5Y in order to offset the dollar duration risk? (5 points)

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