NEED $"$E$"$ AND $"$F$"$ ANSWERED. PLEASE SHOW THE EXCEL EQUATIONS AS WELL.

e$.$ How would the price of the bond be affected by changing the going market interest rate? $($Hint: Conduct a sensitivity analysis of

price to changes in the going market interest rate for the bond. Assume that the bond will be called if and only if the going rate of

interest falls below the coupon rate. That is an oversimplification, but assume it anyway for purposes of this problem.$)$

We can use the two valuation formulas to find values under different r$\text{'}$s$,$ in a $2-$output data table, and then use an IF

statement to determine which value is appropriate:

f$.$ Now assume the date is $\frac{10}{25}\frac{?}{2019}.$ Assume further that a $12\%,10-$year bond was issued on $\frac{7}{1}\frac{?}{2019},$ pays interest semiannually

$($January $1$ and July $1),$ and sells for $$1,100.$ Use your spreadsheet to find the bond's yield.

Refer to this chapter's Tool Kit for information about how to use Excel's bond valuation functions. The model finds the price of a bond, but

the procedures for finding the yield are similar. Begin by setting up the input data as shown below:

Yield to Maturity:

Hint: Use the Yield function.For dates, either refer to cells D$122$ and D$123,$ or enter the date in quotes, such as $"10/25/2014".$

To find the yield to call, use the YIELD function, but with the call price rather than par value as the redemption

Yield to call:

You could also use Excel's "Price" function to find the value of a bond between interest payment dates.