A company issues the perpetual bond called PROFIT, which has a nominal value of $1,000$

and an annual coupon of $85,$ while the annual yield of other bonds of the same degree of risk

default rate is $8\%.$ The same issuer is also issuing the GAIN bond

which has the same degree of risk as the PROFIT bond but with a three$-$year duration. These new bonds pay an annual coupon of $85,$ have a face value of $1,000$ and yield $8\%.$

A$)$ What is the economic value of the PROFIT and GAIN bonds?

Please show workings in excel.

$\backslash$Beta $.$

Using a range of yields to maturity of $5\%$ to $17\%,$ present

diagrammatically the changes in the current market values of the two bonds. What do you notice by comparing the change in each bond's price relative to its yield? What conclusions drawn for investors? $(15$ credits$)$

Please tell me how I can I do this in excel.