I. Consider the following three bonds: Bond N Bond S Bond T Par Value 1,000 1,000 1,000 Coupon 9% 0% 7% Time to Maturity Required Yield 7% 7% 7% (a) Calculate and interpret the present values of each bond. 4 years 6 years 3 years (11 marks) (b) Calculate and interpret the Macaulay Duration for each bond. (7 marks) (c) If required yield falls from 7% to 6.1%, discuss the action that a bond portfolio manager should take in this situation