On February 15, 2022, the US Government issued two bonds. Bond E matures on February 15, 2032. Bond F matures on February 15, 2042. Both bonds have a coupon rate of 5.00%, payable semiannually on 15 August and 15 February. If, on March 15, 2022, a $1000 face value Bond E is selling for $929.76, what is the bonds yield to maturity using the following Excel functions?

1. Show the detailed cash flow calculations
2. XIRR

1. Yield
2. Show the calculation that will reconcile the difference in the YTM calculation between XIRR and Yield.

Part B

Create a table in excel to compare the bond prices of Bond E and Bond F comparing the bond prices when interest rates vary from 1%, 2%, 3%, all the way up to 20%. (1% increments)

Part C

Can you conclude that the longer-term bonds price is more sensitive to changes in market interest rates? Explain using a graph.

SOLVE IT IN EXCEL PLEASE