Fill out the tables above (year 0 and year 7) and explain which bond would you use to meet the obligation? What two bonds could you use in a portfolio to meet the obligation at any interest rate in year 7 and in what proportion? List all possibilities and explain why your choice is best. Assume only long position in each bond is allowed. What is better, the bond you've selected in part (a) or two bonds you've picked in part (b)? Construct data table that shows the terminal value for the bond picked in part a and for all possible bond portfolios from part (b) as a function of interest rate in year 7. Using resulting data table explain your choice. Use Data Table feature of Excel. Use year 7 interest rate range between 1% and 14% inclusive, ( Look at Lecture 10 on portfolio convexity) Fill out the tables above (year 0 and year 7) and explain which bond would you use to meet the obligation? What two bonds could you use in a portfolio to meet the obligation at any interest rate in year 7 and in what proportion? List all possibilities and explain why your choice is best. Assume only long position in each bond is allowed. What is better, the bond you've selected in part (a) or two bonds you've picked in part (b)? Construct data table that shows the terminal value for the bond picked in part a and for all possible bond portfolios from part (b) as a function of interest rate in year 7. Using resulting data table explain your choice. Use Data Table feature of Excel. Use year 7 interest rate range between 1% and 14% inclusive, ( Look at Lecture 10 on portfolio convexity)