2 Consider the following newly issued bonds-a coupon-bearing bond, a zero-coupon bond, and a perpetuity. 3 4 Inputs Kimball Industries Coupon Bond Blake & Associates Zero-Coupon Bond 5 Settlement Date 1/1/2020 1/1/2020 PJ Financial Perpetual Bond 1/1/2020 6 Maturity Date 7 Coupon Rate 8 Face Value 9 Coupons per Year 10 11 12 Yield 13 14 Required: 1/1/2040 3.20% 1/1/2040 Indefinite/Infinite 0.00% 100 1 100 2.61% 100 1 1 Market Data 4.13% 15 Note: Use cells A2 to B12 from the given information to complete this question. 16 17 Using any necessary data above, calculate the Macaulay Duration of each bond. Then, use the Macaulay Duration to solve for the Modified Duration. 18 19 Kimball Industries Coupon Bond Blake & Associates Zero-Coupon Bond PJ Financial Perpetual Bond 20 Price $87.51 $44.51 21 Macaulay Duration 14.68 20.00 22 Modified Duration 14.10 19.21 23 < = Graded Worksheet + McGraw Hill Check My Work View Your answer is not complete. Legend Correct Answer Incorrect Answer Correct formula but wrong value Graded cell: Leave blank if no answer is needed. Scratchpad: Use as a non-graded workspace Continue Working