I have been searching everywhere for this, but I can't find an example.  I would think that it should be a very basic thing.

I want to test several different portfolio optimization methods, including mean-variance, minimum-variance, and most-diversified portfolio.  I know how to do all these things with stocks, but am not sure how to include bonds.  I want to use a simple 60/40 portfolio (rebalanced monthly) as a benchmark.  Does anyone have an example of how to backtest a 60/40 portfolio?  

I am partly interested to find out what the best bond index is to use for it.  Assuming I just fall back on using the S&P500 for the stock component and US 10-Year for the bond component, how do I translate the 10-year yields off FRED into prices?  I have access to the Barclay's and JP Morgan aggregate bond indexes at work, but would rather use an open source (such as Yahoo or FRED) for this project so that I can pass it along to someone else without any issues.

Thanks so much in advance for any help!

Regards,
John Belmont
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