Currently, investment company A has raised a closed bond fund with a maturity of six years and a face value of 100,000,000 yen. The current market rate is 5 percent. Investment Company A is considering asset management by the following three bonds to prepare for this repayment. Answer the questionnaire below. If there is no presentation or explanation of the expression to obtain the figures, and there is only an answer, a significant deduction is made.

(Units: 1,000 yen) 5% discount rate Currently 2023/1/1 Bonds 1 Bonds 2 Bonds 3 Debt Coupon Rate 8.948% 6.962% 20.540% 0.00% Maturity 6 8 9 6 Face value 1,000 1,000 1,000 100,000 Maturity date 2029/1/1 2031/1/1 2032/1/1 2029/1/1

(a) Calculate the bond price for bonds 1 to 3.

(b) Calculate the duration (of Macaulay) of bonds 1 to 3.

(c) Assuming that bond 1 is selected and interest rates do not change until maturity, how many units should be purchased now?

(d) Interest rates have now fallen from 5% to 4%.At this time, assume that each bond purchased the unit necessary to repay the debt at this time, Which bonds will not be repayable at a future date? If the interest rate reaches 4% at this time, the future value of each bond will be calculated Calculate and answer each investment in .Coupons received along the way shall be operated at market interest rates.

(e) Do the same analysis as in paragraph (d) for cases where interest rates have now risen from 5% to 6%.

(f) Based on the above two questions, which bond would be the best choice? Explain the characteristics of the bonds and how they are used