Question: 4. (35 points) You are given the following data for a bond. The Coupon Payment is $50 on a 5-year bond (5 years until

4. (35 points) You are given the following data for a bond.

4. (35 points) You are given the following data for a bond. The Coupon Payment is $50 on a 5-year bond (5 years until maturity) with a Face Value of $1000. The current interest rate (YTM) is 10%. Fill in the following table. Year 1 2 3 4 5 5 Cash Flow (CF) a. Determine the Price of this bond. Present Value (PV) DUR= CF, 1 (1+1 b. Determine the (Macaulay) Duration for this bond (FOR FULL CREDIT SHOW YOUR WORK FOR PERIODS 3 AND 4: DERIVE THE WEIGHT AND WEIGHTED MATURITY): CF +1 (1 + 1) Weight c. Determine the Modified Duration for this bond. Weighted Maturity CF (1+1) DUR=

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