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Look up the price of the February 2037 4.75% US Treasury Bond (CUSIP: 912810PT9). You can find Treasury Price quotes at https://www.ws.j.com/marketdata/bonds/treasuries. (BID: 108.1920, AsK:

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Look up the price of the February 2037 4.75\% US Treasury Bond (CUSIP: 912810PT9). You can find Treasury Price quotes at https://www.ws.j.com/marketdata/bonds/treasuries. (BID: 108.1920, AsK: 108.2020) a. Using the spreadsheet features in Excel, calculate the yield to maturity, the duration, and the modified duration of the bond. b. Using Excel, calculate the accrued interest on the bond. c. Using Excel, construct a graph of bond price versus yield to maturity for the bond. d. Calculate the effective duration and convexity of the bond using the formulas in the book or the class notes. e. Using only your effective duration estimate, what would be the price of the bond if the YTM increased by 100 basis points? f. Using your effective duration and your effective convexity estimate, what would be the price of the bond if the YTM increased by 100 basis points. g. Using Excel, calculate the exact price of the bond if the YTM increased by 100 basis points. How close is it to your answer in part g ? Look up the price of the February 2037 4.75\% US Treasury Bond (CUSIP: 912810PT9). You can find Treasury Price quotes at https://www.ws.j.com/marketdata/bonds/treasuries. (BID: 108.1920, AsK: 108.2020) a. Using the spreadsheet features in Excel, calculate the yield to maturity, the duration, and the modified duration of the bond. b. Using Excel, calculate the accrued interest on the bond. c. Using Excel, construct a graph of bond price versus yield to maturity for the bond. d. Calculate the effective duration and convexity of the bond using the formulas in the book or the class notes. e. Using only your effective duration estimate, what would be the price of the bond if the YTM increased by 100 basis points? f. Using your effective duration and your effective convexity estimate, what would be the price of the bond if the YTM increased by 100 basis points. g. Using Excel, calculate the exact price of the bond if the YTM increased by 100 basis points. How close is it to your answer in part g

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