Consider the following three bonds: Par Value Annual Coupon Rate Frequency of coupon Time to Maturity Yield to Maturity Bond X $1,000 8.00% Semi-annual 2 6.00% Bond Y $1,000 7.50% annual 3 7.00% Bond Z $1,000 0.00% annual 6 3.50% Required: (a) Calculate the present value of each bond. (10 marks) (b) Calculate the duration for each bond. (7 marks) (c) Calculate the modified duration for each bond. (3 marks) (d) Contrast between the term "duration' and modified duration. Interpret the answer obtained in Part (c)