Please solve for number 7

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. 0.036/2= 0.018
3. PV(rate,nper,pmt,fv)
4. PV(0.018,60,-11.25,-1000,0)
5. = $753.58

7. Compute the value of the bond in b.6 if there is a change of 48 basis points in the required yield due to a fall in the default risk of the debtor (where 1 basis point=0.01%, so the change is 0.48%)