The Excel file Portfolio Bond Immunization Data contains information about three bonds. Use this data to:

a.Compute the amount to be invested to meet the future liability noted in the data. This future liability is due in 10 years.

b. Find a combination of Bond 1 and Bond 2 having a target duration of 10 years.

c.Find a combination of Bond 1 and Bond 3 having a target duration of 10 years.

d. Perform an analysis using a data table and an accompanying graph to determine which of the following options (i.e., a portfolio consisting of Bond 1 and Bond 2, a portfolio consisting of Bond 1 and Bond 3, or a portfolio consisting of Bond 2) would be preferred to attempt to immunize this obligation.

i. Construct a data table by varying the yield to maturity that shows the value of each option at the end of 10 years. Use yield to maturity values ranging from 0% to 15% in 1% increments.

ii. Based on your data table, construct a graph that demonstrates the performance of these 3 options.

iii. Analyze each options performance in attempting to achieve immunization.