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PLEASE PROVIDE EXPLANATION AND CALCULATIONS. WILL UPVOTE. On Excel, You have to determine the price of the bond with the changes in the interest rate.
PLEASE PROVIDE EXPLANATION AND CALCULATIONS. WILL UPVOTE.
On Excel, You have to determine the price of the bond with the changes in the interest rate. Please fill up the orange-colored cells. Also, please draw the YTM graph under different interest rates to show how the price of bond changes with the changes in interest rate. To draw the YTM graph, you have to fill up the green-colored cells.
New YTM New Price of Bond X New Price of Bond Y % change in Bond X % change in Bond Y Fall in interest rate New YTM New Price of Bond X New Price of Bond Y % change in Bond X % change in Bond Y YTM 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% ? ? ? ? 6% ? ? ? ? Price of Bond X Price of Bond Y 3% New YTM New Price of Bond X New Price of Bond Y % change in Bond X % change in Bond Y Fall in interest rate New YTM New Price of Bond X New Price of Bond Y % change in Bond X % change in Bond Y YTM 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% ? ? ? ? 6% ? ? ? ? Price of Bond X Price of Bond Y 3%Step by Step Solution
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