can you help me for this please i also need the formula you used on excel please
points): a. the step-by-step method as in class using the template; b. the Excel function called Duration. (2). Compute on Sheet 3 the convexity for these two bonds using the templates. ( 4 points) (3). On the TOP RIGHT corner of Sheet 3 , use PP= Modified Duration y+21 Convexity (y)2 =(1+y)MacaulayDurationy+21 Convexity (y)2 to calculate the percentage change in price for each of these two bonds when the yield ( 2 points) a. increases by 1% b. decreases by 1% Note: Even though duration is on another sheet, you still can point to/reference it. \begin{tabular}{|c|r|} \hline 38 & A \\ \hline 39 & 1 \\ \hline 40 & 2 \\ \hline 41 & 3 \\ \hline 42 & 4 \\ \hline 43 & 5 \\ \hline 44 & 6 \\ \hline 45 & 7 \\ \hline 46 & 8 \\ \hline 47 & 9 \\ \hline 48 & 10 \\ \hline 49 & 11 \\ \hline 50 & 12 \\ \hline 51 & 13 \\ \hline 52 & 14 \\ \hline 53 & 15 \\ \hline 54 & 16 \\ \hline 55 & 17 \\ \hline 56 & 18 \\ \hline 57 & 19 \\ \hline \end{tabular} CDE Converity =((1+YTM)21)M15[1(t2+t)] Comexity=((1+YTM)21)t=1T[w(t2+t)]wt=PV(Bond2)PV(CFj)=PCFi/(1+y) Parte P2 Copy. 4 A B C D weight, w PV(CF)/Bond 34 Time,t CF(t) PV(CF) Price (ln2+t) w2(mn+t) points): a. the step-by-step method as in class using the template; b. the Excel function called Duration. (2). Compute on Sheet 3 the convexity for these two bonds using the templates. ( 4 points) (3). On the TOP RIGHT corner of Sheet 3 , use PP= Modified Duration y+21 Convexity (y)2 =(1+y)MacaulayDurationy+21 Convexity (y)2 to calculate the percentage change in price for each of these two bonds when the yield ( 2 points) a. increases by 1% b. decreases by 1% Note: Even though duration is on another sheet, you still can point to/reference it. \begin{tabular}{|c|r|} \hline 38 & A \\ \hline 39 & 1 \\ \hline 40 & 2 \\ \hline 41 & 3 \\ \hline 42 & 4 \\ \hline 43 & 5 \\ \hline 44 & 6 \\ \hline 45 & 7 \\ \hline 46 & 8 \\ \hline 47 & 9 \\ \hline 48 & 10 \\ \hline 49 & 11 \\ \hline 50 & 12 \\ \hline 51 & 13 \\ \hline 52 & 14 \\ \hline 53 & 15 \\ \hline 54 & 16 \\ \hline 55 & 17 \\ \hline 56 & 18 \\ \hline 57 & 19 \\ \hline \end{tabular} CDE Converity =((1+YTM)21)M15[1(t2+t)] Comexity=((1+YTM)21)t=1T[w(t2+t)]wt=PV(Bond2)PV(CFj)=PCFi/(1+y) Parte P2 Copy. 4 A B C D weight, w PV(CF)/Bond 34 Time,t CF(t) PV(CF) Price (ln2+t) w2(mn+t)
