Inputs

Annual Coupon Rate $3\mathrm{.}70\%$

Number of Years $6$

Face Value $($PAR$)$ $$1,000$

Price $$1,100\mathrm{.}27$

In Excel:

a$.$ What is the YTM$?$

b$.$ Calculate Macaulay$$s duration and co

c$.$ Plot the price$-$yield relationship using Excel. Hint: $($Calculate prices for different yields, e$.$g$.,$ yields from $0\mathrm{.}5\%$ to $23\mathrm{.}5\%$; then your x axis is yields and y axis prices. The plot should show an inverse relationship $.$