Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A 3 year bond with semiannual coupons of 13% has a yield of 20.3%. You are to use Excels SumProduct function to compute the duration
A 3 year bond with semiannual coupons of 13% has a yield of 20.3%. You are to use Excels SumProduct function to compute the duration of this bond. Given two ranges of values, SumProduct computes their dot product. Create a table as shown, with entries appropriate to your bond, replacing the question marks with appropriate formulas.
In a single cell, use the functions SumProduct and Sum to compute the duration of this bond using only the cells shown above.
(a) What is the duration of this bond?
(b) What formula using the functions SumProduct and Sum (and using 37 characters or less) calculates this duration?
Answer correct to 4 decimals
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started