Calculate the Duration and Modified Duration of each bond (already completed). Create a chart the shows both measures versus term to maturity. Does duration increase linearly with term? If not, what relationship do you see?

2 Settlement Date 3 Maturity Date 4 Coupon Rate 5 Market Price 6 Face Value 7 Required Return 8 Frequency Bond A 2/15/2017 8/15/2027 4.00% 975.00 1,000.00 4.35% 2.00 Bond B 2/15/2017 5/15/2037 6.25% 1,062.00 1,000.00 5.50% 2.00 Bond C 2/15/2017 6/15/2047 7.40% 1,103.00 1,000.00 6.50% 2.00 Bond A 970.75 Overvalued Bond B 1,090.81 Undervalued B ond C 1,118.44 Undervalued 10 2a 11 Intrinsic Value 12 Undervalued/Overvalued 13 14 2b/c 15 Current Yield 16 YTM Bond A 4.10% 4.30% Bond B 5.89% 5.73% Bond C 6.71% 6.61% 18 Bond A Bond C 19 2d 20 Duration 21 Modified Duration 8.64 8.46 Bond B 11.96 11.64 13.16 12.75