Question: Find the spreadsheet for Table 3.4. in Connect. Show how duration and volatility change if (a) The bond's coupon is 8% of face value and

Find the spreadsheet for Table 3.4. in Connect. Show how duration and volatility change if

(a) The bond's coupon is 8% of face value and

(b) The bond's yield is 6%. Explain your finding.

TABLE 3.4

Year (t) $90 $86.54 $83.21 $80.01 $76.93 $73.97 71.13 828.31 PV$1,300.10 $90 $90 $90 S90$1,090 Payment PWG) at 4% Fraction of total value [PV(C)/PM Year x fraction of total value [tx PV(C)/PVM 0.0666 0.0640 0.0615 0.0592 0.0569 0.0547 0.6371 0.0666 0.1290 0.1846 0.2367 0.2845 0.3283 4.4598 Total-duration 5.69

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