Urgent Need this question Investment Subject

Question 2. Answer all parts of the question. I. Consider the following three bonds: (a) Calculate and interpret the present values of each bond. (11 marks) (b) Calculate and interpret the Macaulay Duration for each bond. (7 marks) (c) Discuss the actions that a bond portfolio manager should take if he is expecting a fall in the future interest rate. (3 marks) II. You are considering a new project that costs 900 and you have estimated the following cash flows: Year 1: 400; Year 2: 300; Year 3: 200. If the discount rate is 10%, do you recommend the project? (4 marks)