Exhibit 10 on page 143

CFA Level III Fixed Income
#1

With exhibit 10 on page 143, portfolio 1 is a bullet and portfolio 2 is barbell.

Why for portfolio 1, is the 10 year overweighted?

Why for portfolio 1, are the 2, 3 and represented at such a high rate?

I would think it should just be overweighted at the 30 year.

THanks

#2

In a bullet portfolio, distribution is always weighted towards the middle range. In a barbell it is weighted towards the high and low end range.

#3

Got it. Much appreciated.