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Please show in excel with formulas. 5. You have two (2) bonds with the following characteristics: Bond A Bond B 3.0% 2.0% 4.3114% 4.6467% Characteristics
Please show in excel with formulas.
5. You have two (2) bonds with the following characteristics: Bond A Bond B 3.0% 2.0% 4.3114% 4.6467% Characteristics Coupon Yield to Maturity Years to Maturity Par Value Price 8 $1,000 $845.00 9 $1,000 $880.00 a. What are the bond durations? b. If rates rise to 5.00%, what are the new prices for each bond? F G 1 A B a. Duration A 2 B 3 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 4.90 9.59 14.08 18.38 22.50 26.43 30.19 33.79 37.22 40.49 43.61 46.58 49.40 52.09 54.65 5,764.44 7.33 14.33 21.02 27.39 33.47 39.27 44.78 50.03 55.02 59.76 64.26 68.53 72.58 76.40 80.02 83.44 86.66 6,069.85 7.90 D E b. Price at 5.0% A YTM 4.3114% Coupon 2.000% Par 1,000.00 Start (845.00) 0.5 10.00 1.0 10.00 1.5 10.00 2.0 10.00 2.5 10.00 3.0 10.00 3.5 10.00 4.0 10.00 4.5 10.00 5.0 10.00 5.5 10.00 6.0 10.00 6.5 10.00 7.0 10.00 7.5 10.00 8.0 1,010.00 8.5 9.0 Price @5.0% 804.1750 B 4.6467% 3.000% 1,000.00 (880.00) 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 1,015.00 856.4664 7.39Step by Step Solution
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