Consider the following information on three government bonds: a) Calculate the clean and dirty prices for each of the ab

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Consider the following information on three government
bonds:
a) Calculate the clean and dirty prices for each of the above 3
bonds (use Excel functions). Explain your answers.
b) Calculate the current yields of the 3 bonds. How do they
compare with the adjusted coupon yields? Using Bond X as an
example, plot the 2 yields across a range of prices. What do you
observe?
c) Using a data table, show the sensitivity of Bond Z's prices
to changes in yield across a range of settlement dates. Comment on
your results.
d) Using Bond X as an example, show the effect on its duration
when the bond's maturity increases. Plot the result. What happens
to duration as the number of years increases?
e) If you can lock in at the spot interest rate of 4.85% as at
30/06/2021 for a one-year investment horizon, what would be the
implied forward rate based on the two-year zero-coupon Bond Y? What
do the results suggest about the shape of the term structure?
Explain your answer.