Calculate Present Values, Macauly Duration and Convexties of the following bonds:

QUESTION 8 (use Excel to do this question) Assume you have four different bonds B1 - A two-year bond with a nominal rate of 2% per annum B2 - A five-year bond with a nominal rate of 3 % per annum B3 - A ten-year bond with a nominal rate of 4 % per annum B4 - A twenty-year bond with a nominal rate of 5% per annum All these bonds pay annual coupons and have face values of $1,500. Calculate their present values, Macauly durations and convexities using a YTM of 3% (YTM = 0.03). (2 marks)