Three coupon bonds Maturity (year) 1 Yield(YTM) 5% Coupon 5% 2 3 4% 6% 3% 4% a) Calculate the market price (current price) for each of the three bonds from the table. b) calculate 1-year, 2-year and 3-year spot rates from the figures in the table. c) you have a payment obligation of a total of NOK 1,000, where half is due in one year and the rest is due in two years. Calculate the duration of your payment obligation. d) Calculate the convexity of the payment obligation described in c) e) You have the option of immunizing the payment obligation with a bond portfolio that has the same duration as the payment obligation but with a convexity that is less than the one you find in d). What happens to the present value of your total position (payment obligation plus bond portfolio) for a general increase in the interest rate level? Explain briefly