PLEASE FIX MY PROBLEM # 6

6. Compute the value of the bond in b.5 if investors suddenly required a yield to maturity of 0.036% on the bond (or 360 basis points).

1. 1000*0.225*1/2 = $11.25
2. 0.036*1/2= 0.00018
3. (-PV(rate,nper,pmt,fv))
4. (-PV(0.00018,60,11.25,1000))
5. = 1,660.57

8. Compute the value of the bond in b.6 if the bond is callable (without a make-whole call feature) and there is a change of 36 basis points in the required yield due to a rise in the chance of the debtor prepaying the principal of the bond (where 1 basis point=0.01%, so the change is 0.36%)