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Please use excel and show steps on excel A 7% coupon bond with a 10 year maturity is selling to yield 8%. The face value
Please use excel and show steps on excel
A 7% coupon bond with a 10 year maturity is selling to yield 8%. The face value of the bond is $100. The bond pays coupons semi-annually.
a) Find the price of the bond.
b) Find the modified duration of the bond.
c) Find the convexity measure in years.
d) Suppose the required yield on this bond increases by 100 basis points. Project the new price of the bond based on modified duration.
e) Projected the new price of the bond based on both modified duration and convexity.
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