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Using the following information calculate the bond price, duration, convexity in the specified cells (F4, F6, F8 not on a separate spreadsheet) and show the
Using the following information calculate the bond price, duration, convexity in the specified cells (F4, F6, F8 not on a separate spreadsheet) and show the formulas in the orange cells. Incorporate Bloomberg's mnemonics and functions Current date Maturity date YTM Coupon Face value Frequency 11-Dec-18 30-0ct-22 2.650% 3.25% Bond Price Formula Calculate the modified duration Formula 100 What is the interpretation of the modified duration? Create a Data Table in which the duration is computed as a function of the coupon rate (coupon 0%,1%,2%, and comment on the effect of coupon on the duration. 11%). Build a chart of the modified duration as a function of coupon rate
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