Portfolio Mangement

I was able to get the answer for questions #3 but I was wonding if you could help show the work behind it.

Thank you!!!!

answer in uppercase in the answer sheet. Each question II. Choose the best answer. Write your carries a credit of 2% Use the following passage to answer questions 1 and 2 at maturity is A bond with coupon paid annually) rate of 3% par today Its value S100,000. It matures in three years aca clay l. The Macaulay duration of this bond is years 91 B. 2.85 C. 2.89 2. The modified duration of this bond is years. D. 2.78 SB. 2.85 2.83 A 20-year maturity bond pays 9% pa. coupon Its yield to is 10%. er the upcoming year, you expect interest rates to decline and that the yield to maturity on this bond will only be 8% a year from now. Using horizon analys he you by holding this bond over the upcoming year is D 30.1% C. 29.6% B. 15.0% A. 12.5% A bond with a 9-year duration is worth si,080.00 and its yield to maturity is 8%. If the d to maturity falls to 7.84% you would predict that the new value of the bond will be D. $1,124 C. $1,094 B. $1,036 A. $1,035 The Macaulay duration increases monotonically with time remained until maturity for all of the following bonds except bonds sold at iscount 342 D. pure discount C. premium A. par 6. Rank the following bonds in order of descending duration. Yield to maturity, Time to Maturity, yrs Bond Coupon Rate, 15 10 20 20 15 15 A, C, A, D,B,E B. C,D,A, B,E CCC,D D. C,A,D,E, B D,A,E,B o create a portfolio with duration of 4 years using a 5-year zero-coupon bond and a 3 year with a yield to maturity of 10%, one would have to invest