1 B Bond Valuation 2 Settlement Date 2/15/2018 3 Maturity Date 2/15/2038 4 Coupon Rate 8% 5 Required Return 9% 6 Face Value 1000 7 Frequency 2 8 Basis 0 9 Current Yield ? What is the correct formula for B9? -(B4-B6)/(PRICE(B2,B3,B4,B5,B6/B6 100,B7,B8)*B6) =B4*B6/PRICE(B2,B3,B4,B5,B6/B6 100,B7,88)/100*B6 -(B49B6)/(PRICE(B2,B3,B4,B5,B6/B6 100,87,88)/100'B6) =B4B6/PRICE(B2,B3,B4,B5,B6/B6/100,37,38) 1 Settlement Date 2 Maturity Date 3 Coupon Rate 4 Yield 5 Face Value 6 Frequency 7 Basis 8 Price 9 Modified Duration 2/15/2018 2/15/2038 8.00% 8.39% 1.000 2 0 962.50 > What is the correct formula for cell B8 to calculate the modified duration? =MDURATION(B1,B2,B3,B4,B6,B7) - DURATION(B1,B2,B3) =MDURATION(B1,B2,B4,B3,B6,B7) -DURATION(B1,B2,B3,B4,B6,B7) 1 B Bond Valuation 2 Settlement Date 2/15/2018 3 Maturity Date 2/15/2038 4 Coupon Rate 8% 5 Required Return 9% 6 Face Value 1000 7 Frequency 2 8 Basis 0 9 Current Yield ? What is the correct formula for B9? -(B4-B6)/(PRICE(B2,B3,B4,B5,B6/B6 100,B7,B8)*B6) =B4*B6/PRICE(B2,B3,B4,B5,B6/B6 100,B7,88)/100*B6 -(B49B6)/(PRICE(B2,B3,B4,B5,B6/B6 100,87,88)/100'B6) =B4B6/PRICE(B2,B3,B4,B5,B6/B6/100,37,38) 1 Settlement Date 2 Maturity Date 3 Coupon Rate 4 Yield 5 Face Value 6 Frequency 7 Basis 8 Price 9 Modified Duration 2/15/2018 2/15/2038 8.00% 8.39% 1.000 2 0 962.50 > What is the correct formula for cell B8 to calculate the modified duration? =MDURATION(B1,B2,B3,B4,B6,B7) - DURATION(B1,B2,B3) =MDURATION(B1,B2,B4,B3,B6,B7) -DURATION(B1,B2,B3,B4,B6,B7)