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In the financial market, there are four bonds: 1-year, 2-year, 3-year and 4-year bonds. The main information about the bonds and the market are given

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In the financial market, there are four bonds: 1-year, 2-year, 3-year and 4-year bonds. The main information about the bonds and the market are given below: NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. a) Compute the coupon payment. (10p) b) Compute the beginning of year prices for all maturity bonds. (20p) c) Compute the prices at year end (at 10\% YTM) for all maturity bonds. (20p) d) Compute the capital gains for all maturity bonds. (12p) e) Compute the 1-year total return and total rate of return for all maturity bonds. (15p) f) If the modified duration for 3-year bond 2.20 years, compute the Macaulay duration. (15p) g) Which bond is the best for an investor and why? (8p)

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