Consider the following newly issued bonds:
Inputs	Juan Rojo, Incorporated 10-Year Bond	McAllister Avionics 9-Year Bond
Settlement Date	01-01-2020	01-01-2020
Maturity Date	01-01-2030	01-01-2029
Coupon Rate	0.080	0.050
Redemption Value	100	100
Coupons per Year	2	1
Market Data
Initial Yield	0.075
Yield Change	0.010
Required:
Using any necessary data above, calculate the Price, the Macaulay Duration and the Modified Duration for each bond. Then, predict the price change given a change in the prevailing yield. Then, assume the market yield changed, as described below. In the second table, calculate the approximate price change and new price according to duration (the first-order approximation).
(Use cells A5 to C13 from the given information to complete this question.)
	Juan Rojo, Incorporated 10-Year Bond	McAllister Avionics 9-Year Bond
Initial Price
Macaulay Duration
Modified Duration
First-Order Approximation, Price Change	Juan Rojo, Incorporated 10-Year Bond	McAllister Avionics 9-Year Bond
Price Change
New Price