Use that two sheets and portfolio to answer the questions

In 2016 Valia purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV) of $2 000 000, as she was attracted by the fixed income stream in order to fund her retirement expenses.

a)What is the price of this bond in 2020 (6 years remaining) at a current market interest rate of 0.30% p.a.?

Showformula,variables,calculationand aconcluding statementin your response.

b)Is Valia's coupon bond currently selling at a premium, par or discount? Describe the relationship between bond prices and interest rates.

c)Valia decided to sell the bond from part a) and is considering her investment options. A friend suggested that she invests the proceeds by buying a short-term debt instrument. Explain two advantages of short-term debt instruments.

d)Warren, a Wall street portfolio manager, informed Valia that she should consider investing in his portfolio instead. He said his portfolio is perfect for someone who is looking to retire within the next 6 MONTHS. His portfolio has the following allocation of assets:

Does Warren have a point? Why or why not?

e)Valia decides to pass on $1 000 000 of her savings for her child Tony, who is currently 20 years old. Should Tony invest in mostly bonds, like his Mum? Suggest an option Tony can consider when investing his money. Explain why your choice are appropriate for Tony.