For part c, please show excel formula entry:

Macaulay Corporation, a fixed-income securities consulting firm, issued bonds with the following characteristics: CIY Maturity (yrs) CouponRate MktRate Face feature 2 3 7.00% .50% 1,000 noncallable semiannual coupons a) Using the following template, calculate this bond's Macaulay Duration D [1] [2] [3] [4] [5] = [4] : [P] [6] = [2] * [5] weight of time-weighted Period Year CF PV(CF) PV(CF) value Price of bond = Sum of PV(CF) = [P] = D = b) Using the algebraic formula, calculate this bond's Duration D. Hint: you should get the same answer as [a]. D = ity (1ty)+t(c -y) where y = periodic market rate y c[(1 + y)'-1] + y c = periodic coupon rate t= number of periods y= C= D = t= c) Using the Excel formula, calculate this bond's Macaulay Duration D and Modified Duration D*. PS: the D answer here should be the same as that in [a] and [b]. "Macaulay" DURATION (Settlement Date, Maturity Date, Coupon Rate, Market Rate, Frequency of Coupon PMTs, 0) Notes For most classroom purposes, set Settlement Date to "01/01/2000". Then set Maturity Date to Settlement Date "plus number of years of maturity of the bond", e.g. "01/01/2020" if it is a 30-year bond. Frequency of Coupon PMTs refer to the number of coupon payments per year, e.g. "2" for semi-annual, etc. The last parameter, "0", refers to the type of day count basis, e.g. US (NASD) 30/360, Actual/365, etc. For more info on this formula, use Excel's Help and search for "Duration". If this function is not available on your Excel, run the Setup program to install the Analysis ToolPack. After you install the Analysis ToolPack, you must enable it by using the Add-Ins command on the Tools menu. Refer to Excel's Help for detail instruction. The problem with putting "1/1/2000" and "1/1/2030" is that it makes its use inflexible when you are using maturity (in number of years) as one of your parameters. One solution is to introduce two cells to your calculation: [i] enter Settlement Date [ii] auto-calculate its Maturity Date Then use both in the parameters of the above Excel formula. PS: Use "Mduration" with same parameters for calculating Modified Duration D*. CIY Maturity (yrs) | CouponRate MktRate Settlement Date Maturity Date 2 7.00% .50% 01/01/2000 01/01/2003 Using Excel "DURATION" formula,[