Question: Find the live spreadsheet for Table on this books Web site, www.mhhe.com/bma. Show how duration and volatility change if (a) The bonds coupon is 8%

Find the â€œliveâ€ spreadsheet for Table on this bookâ€™s Web site, www.mhhe.com/bma. Show how duration and volatility change if

(a) The bondâ€™s coupon is 8% of face value and

(b) The bondâ€™s yield is 6%. Explain yourfinding.

Find the â€œliveâ€ spreadsheet for Table on this bookâ€™s Web

Feb. Aug. Feb 2009 2010 2010 2011..2 Aug. Feb. Aug. Feb 013 2014 2014 2015 2 ug. Date Year (f) Cash payment (C 5.63 5.63 5.63 5.65.63 5.63 5.63 105.625 PV(C) at 290 fraction of total value 0.0366 0.0363 0.0359 0.0355.0.0338 0.0335 0.0332 0.6165 0.5 1.0 1.5 2.0 4.5 5.0 5.5 6.0 557 551 5.46 5.41 5.14 5.09 5.04 93.74 -152.05 Year x fraction of total value 0.0183 0.0363 0.0539 0.0711 0.1522 0.1674 0.1824 3.6988 Total duration 4.83 Duration (years) 4.83

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