In Excel

A bond with a face value of $1,000 and a remaining maturity of exactly 5 years pays an annual coupon at a rate of 8.0%. This bond currently has a yield-to-maturity (YTM) of 7.5%. Answer the following questions for this bond.

A)Calculate the current price of the bond by separately discounting all the cash flows of the bond using the timeline method. (2)

B)Calculate the modified duration of the bond using the timeline method. (2)

C)Calculate the convexity measure of the bond. (2)

D)Using the modified duration plus convexity model, what should be the price of the bond when YTM is 7.6%? (2)