Your colleague is constructing a table to calculate the duration of 5 year annual coupon paying bonds issued by American Expresso at an effective annual yield of 3% pa. The bonds have a face value of $155,000 and an effective annual coupon rate of 11% pa. Unfortunately your colleague is unwell and has taken the day off work. You have been asked to complete the calculations to present at a meeting. a) Complete the table for your colleague. Give your answers to 4 decimal places. AMERICAN EXPRESSO Cash flow Amount ($) Present value of the cash flow Weight (PVCF/price) (PVCF) 1 17,050 16,553.3981 0.0782 2 17,050 16,071.2603 0.0759 3 17,050 15,603.1653 0.0737 4 17,050 15,148.7042 0.0715 5 b) Calculate the duration (D) of the American Expresso bonds using the rounded values in the table. Give your answer in years to 2 decimal places. D = years c) If the yield were to decrease immediately, the duration of the bonds would: increase decrease Oremain unchanged