Answer all parts of the question 1. Consider the following three bonds: Bond N Bond S Par Value 1,000 1,000 Coupon 8% 5% Time to Maturity 4 years 5 years Required Yield 5% 5% (a) Calculate and interpret the present values of each bond. (b) Calculate and interpret the Macaulay Duration for each bond. (c) If required yield increases from 5% to 6%, discuss the action that a bind portfolio manager should take in this situation Overview