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Please work the questions out on excel and explain each steps. Consider the following bonds. Use a spreadsheet to respond to the instructions below. 1000
Please work the questions out on excel and explain each steps.
Consider the following bonds. Use a spreadsheet to respond to the instructions below. 1000 5 B 1000 10 1000 20 Bond FV Maturity m Coupon rate YTM 1 4 8% 5% 2 6% 7% 5% 9% 1. Calculate the Price, Duration, and Convexity of each bond. 2. Estimate the price change given a 1% decrease in YTM for each bond. 3. Assume Bond C is callable after 10 years, at $1100: a. Estimate the new Duration and Convexity assuming it will be called after 10 years. Consider the following bonds. Use a spreadsheet to respond to the instructions below. 1000 5 B 1000 10 1000 20 Bond FV Maturity m Coupon rate YTM 1 4 8% 5% 2 6% 7% 5% 9% 1. Calculate the Price, Duration, and Convexity of each bond. 2. Estimate the price change given a 1% decrease in YTM for each bond. 3. Assume Bond C is callable after 10 years, at $1100: a. Estimate the new Duration and Convexity assuming it will be called after 10 yearsStep by Step Solution
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