a$.$ Using the PRICE function, calculate the intrinsic value of each bond. Are any of the bonds currently undervalued? How much accrued interest would you have to pay for each bond?

b$.$ Calculate the current yield of each bond. Is this the total return that you would earn each year? If you were on a fixed income, would you care about this number?

c$.$ Using the YIELD function, calculate the yield to maturity of each bond using the current market prices. How do the YTMs compare to the current yields of the bonds?

d$.$ Calculate the duration and modified duration of each bond. Create a chart that shows both measures versus term to maturity. Does duration increase linearly with term? If not, what relationship do you see?

e$.$ Calculate the convexity of each of the three bonds using the approximate convexity formula $(10-11).$ Now use the FAME$\_$Convexity function. Do you get the same results?

f$.$ Which bond would you rather own if you expect market rates to fall by $2\%$ for all bonds? What if rates will rise by $2\%?$ Why?