Part a. Calculate the annualized yield (in continuously compounded terms) for each bond. Show that the yield is not a reliable guide for investment decisions. That is, show that the bond with the highest yield is not the most undervalued bond. Part b. A possible investment involves the purchase of both Bonds A and C. Another possible investment involves the purchase of both Bonds B and C. For each of these alternatives, calculate the annualized yield (continuously compounded} 011 the portfolio which holds both A and C. Also calculate the annualized yield (continuously compounded) on the portfolio which holds both B and C. In comparing these two portfolios, show that yield is not a reliable guide for investment decisions. Also show that valuation based on synthetics \"ad \" while yields do not. That is, show that the net present value of each component can be added up to get the net present value for the portfolio. Also show that the yield on a portfolio is not equal to an obvious weighted average of the yield of its components