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Find the duration of a bond with a settlement date of May 27, 2023, and maturity date November 15, 2034. The coupon rate of the
Find the duration of a bond with a settlement date of May 27, 2023, and maturity date November 15, 2034. The coupon rate of the bond is 6.0%, and the bond pays coupons semiannually. The bond is selling at a bond-equivalent yield to maturity of 7.0%. Use Spreadsheet 16.2. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration 123456789 A 4 A. 8% coupon bond 15 16 Sum: 10 B. Zero-coupon 11 12 13 14 Sum: Semiannual int rate: B C Time until Period 1 2 3 4 1 2 3 4 0.05 Payment (Years) 0.5 1 1.5 2 0.5 1 1.5 2 D Cash Flow 40 40 40 1040 F E PV of CF (Discount rate = 5% per period) =D4/(1+$B$16)^B4 =E4/E$8 =D5/(1+$B$16)^B5 =E5/E$8 =D6/(1+$B$16)^B6 =E6/E$8 = E7/E$8 =D7/(1+$B$16)^B7 =SUM(E4:E7) =SUM(F4:F7) Weight G Column (C) times Column (F) 0 =D10/(1+$B$16)^B 10 =E10/E$14 0 =D11/(1+$B$16)^B11=E11/E$14 0 =D12/(1+$B$16)^B12 =E12/E$14 1000 =D13/(1+$B$16)^B13 =E13/E$14 =SUM(E10:E13) =F4*C4 =F5*C5 =F6*C6 =F7*C7 =SUM(G4:G7) =F10*C10 =F11*C11 =F12*C12 =F13*C13 =SUM(F10:F13) =SUM(G10:G13)
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