Please prove explanation of each step and show all working
1. Today is 1 July 2018. Janet has a portfolio which consists of three differ ent types of financial instruments (henceforth referred to as instrument A, instrument B and instrument C. Janet's portfolio is composed of 100 units of instrument A, 150 units of instrument B and 250 units of instrument C) (35 marks) Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2025 . Instrument B is a Treasury bond with a coupon rate ofJ2 3.55% pa. and face value of 100. This bond matures at par. The maturity date is 1 July 2020 . Instrument C is a Treasury bond with a coupon rate of = 3.25% pa. and face value of 100. This bond matures at par. The maturity date is 1 January 2020 a. 2 marks] Calculate the current price of instrument A per $100 face value Round your answer to four decimal places. Assume the yield rate is J2-3.5% p.a. ii. [2 marks Calculate the current price of instrument B per $100 face value Round your answer to four decimal places. Assume the yield rate is J2 3.5% pa. and Janet has just received the coupon payment. iii. 2marks Calculate the current price of instrument C per $100 face value four decimal places. Assume the yield rate is Round your answer to J2 3.5% pa. and Janet has just received the coupon payment. b. 1 marks What is the duration of instrument A? Express your answer in terms of years and round your answer to three decimal places. Assume the yield rate is J2 3.5% p-a. ii. [2 marks) What is the duration of instrument B? Express your answer in terms of years and round your answer to three decimal places. Assume the yield rate is j2 3.5% pa. iii. 2 marks What is the duration of instrument C? Express your answer in terms of years and round your answer to three decimal places. Assume the yield rate is 32 3.5% p.a