Answer this question in a sheet that you name Duration.

Assume that you get the following information for the two bonds from Wall Street Journal on

October $15,2009$ and they mature on October $15$:

GE $83/8$ due $2039102\mathrm{.}71($current price$)$

Wyeth $5$ due $201999\mathrm{.}08$

a$)$ Calculate the yield to maturity $($YTM$)$ for each of the two bonds in cells B$10($GE$)$ and

B$11($Wyeth$).$

b$)$ Calculate the modified duration for each of the two bonds $($C$10$: GE; C$11$: Wyeth$).$ For

the modified duration, you may use any Excel function except a function with $$Duration$$

or $$Mduration$$ in its name.

c$)$ Calculate the modified duration for a portfolio composed of an equally weighted

combination of the two bonds $($C$12).$