1. (1 point) In the spreadsheet below, please use Excel function Duration to create a Data Table in which the duration is computed as a function of the coupon rate (coupon = 0%, 1%, ..., 11%). Plot the duration and coupon rate based on your Data Table with the duration on the vertical axis and the coupon rate on the horizontal axis. Please mark "duration" for the vertical axis and "coupon rate" for the horizontal axis in the graph.

Effect of Coupon on Duration Maturity = 20, YTM = 15.00%EFFECT OF COUPON ON DURATION Current date 5/21/2007 #NAME? Maturity, in years 20 O O Maturity date 5/21/2027 #NAME? Effect of Coupon on Duration YTM 15% Yield to maturity (i.e., discount rate) Maturity = 21, YTM = 15.00% Coupon 4% ace value 1,000 23 21 Duration 9.0398 #NAME? 19 17 Data table: Effect of coupon on duration 15 O 9.0398 #NAME? O Duration 13 0% 21.0000 1% 13.1204 Bond coupon --> 2% 10.7865 3% 9.6677 4% 9.0110 5 5% 8.5792 0% 5% 10% 15% 6% 8.2736 Coupon rate 7% 8.0459 O 8% 7.7294 9% 7.3707 10% 7.2593 11% 7.1729