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You own two bonds. Bond A is a 5% semi annual coupon bond with a face value of $1000 and has 5 years to maturity.
You own two bonds. Bond A is a 5% semi annual coupon bond with a face value of $1000 and has 5 years to maturity. Its current market yield is 7%. Bond B is a 3% semi annual coupon bond with a face value of $1000 and 10 years to maturity. It has a current market yield of 2%.
Now imagine that after 3 years, the yields of both bonds have increased by 2%. Use Excel line chart to display and list all calculation formulas in Excel.
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