1. The RHR Corporation's 11% coupon (paid semiannually) bonds mature in five years. The bonds' current yield to maturity is 12%.

a. Calculate the Macaulay duration of the bonds.

b. Calculate the modified duration of the bonds

c. Assume that the bonds' YTM drops from 12% to 11.5%. Calculate an estimate of the price change.

d. Explain why modified duration is a better measure than maturity when calculating the bond's sensitivity to changes in interest rates.

e. Identify the direction of change in modified duration if:

(1) The coupon rate of the bond was 9% rather than 11%

(2) The maturity of the bond was 8 years rather than 5 years.

f. Define convexity and explain how modified duration and convexity are used to approximate the bond's percentage change in price given a large change in interest rates. I need to answer those in excel. Thank you

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