Find the duration of a bond with a settlement date of May 27, 2020, and maturity date November 15, 2031. The coupon rate of the bond is 5.5%, and the bond pays coupons semiannually. The bond is selling at a bond-equivalent yield to maturity of 6.5%. Use Spreadsheet 16.2. (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Find the duration of a bond with a settlement date of May 27, 2020, and maturity date November 15, 2031. The coupon rate of the bond is 5.5%, and the bond pays coupons semiannually. The bond is selling at a bond-equivalent yield to maturity of 6.5%. Use Spreadsheet 16.2. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration D F 1 1 E PV of CF (Discount rate = 5% per period) =D4/(1+$B$16)"B4 =D5/(1+$B$16)\B5 =D6/(1+$B$16)"B6 =D7/(1+$B$16/ B7 =SUM(E4:57) Cash Flow 40 40 40 1040 1 G Column (C) times Column (F) =F4*C4 =F5*C5 =F6"C6 =F7*C7 =SUM(G4:47) Weight =E4/E$8 =E5/E$8 =E6/E$8 =E7/E$8 =SUM(F4:F7) B Time until 2 Payment 3 Period (Years) 4 A. 8% coupon bond 0.5 5 2 6 3 1.5 7 4 2 8 Sum: 9 10 B. Zero-coupon 0.5 11 2 12 3 1.5 13 4 2 14 Sum: 15 16 Semiannual int rate: 0.05 Spreadsheet 16.2 Spreadsheet formulas for calculating duration 1 0 1 0 0 1000 =D10/(1+$B$ 16B10 -E10/E$14 =F10*C10 =D11/(1+$B$ 167B11 =E11/E$14 =F11C11 =D12/(1+$B$ 16B12 =E12/E$14 =F12*C12 =D13/(1+$B$167B13 =E13/E$14 =F136C13 =SUM(E 10:E 13) =SUM(F10:F13) =SUM(G10:13)