ASAP

1. Consider the three bonds with face values of 100 TL having annual payments (1 payments per year) as shown in Table below. They are traded to produce a 6% yield a. Determine the price of each bond b. Determine the duration of each bond (not the modified duration) c. Which bond is most sensitive to a change in yield? d. Suppose you owe $500,000 at the end of 2 years. (You want to invest money that will have a value of $500,000 on year 2.) Build a immunized portfolio from A and C. How many of each bond should you buy? coupon rate years to maturity Price Duration Bond A 6% 4 Bond B 0% 3 Bond 5% 1 Price of A = TL Price of B = TL Price of C = TL B 0% 3 Bond 5% 1 Price of A= TL Price of B = TL Price of C = TL Duration of A= years Duration of B - years Duration of C= years Most sensitive bond: (A/B/C) How many Bond A = (integer value) How many Bond C= (integer value)