G 2 3 4 Payment Period (Years) 10.5 A. 8% coupon bond PV of CF (Discount rate = 5% per period) =D4/(1+$B$16/B4 =D5/(1+$B$16B5 =D6/(1+$B$16) B6 =D7/(1+$B$16/ B7 =SUM(E4:E7) Cash Flow 40 40 40 1040 5 Column (C) times Column (F) =F4*C4 =F56C5 =F6C6 =F7'07 =SUM(G4:G7) Weight =E4/E$8 =E5/E$8 =E6/E$8 =E7/E$8 =SUM(F4:F7) 6 I 1.5 2 7 8 Sum: 9 B. Zero-coupon 0.5 10 11 12 13 14 15 16 0 0 0 1000 1000 1.5 2 =D10/(1+$B$16,B10=E10/E$14 =F10*C10 =D11/(1+$B$ 16, B11=E1 1/E$14 =F11*C11 =D12/(1+$B$ 16, B12=E12/E$14 =F12*C12 =D13/(1+$B$ 16, B13 =E13/E$14 =F13*C13 =SUM(E 10:E 13) =SUM(F10:F13) =SUM(G 10:G13) 4 Sum: Semiannual int rate: 0.05 Spreadsheet 16.2 Spreadsheet formulas for calculating duration 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.) 10 points Macaulay duration Modified duration eBook Print References