Bond Number	Coupon	Maturity date	Current Price	Payment Frequency	Next Payment Date	No. of Bonds on Issue	Face value
1	4.50%	15/4/20	$ 102.23	2	15/4/20	800000	$100
2	1.75%	21/11/20	$ 101.85	2	21/5/20	250000	$100
3	5.75%	15/5/21	$ 108.90	2	15/5/20	400000	$100
4	2.00%	21/12/21	$ 103.71	2	22/6/20	350000	$100
5	5.75%	15/7/22	$ 113.94	2	15/7/20	100000	$100
6	2.25%	21/11/22	$ 106.24	2	21/5/20	478000	$100
7	5.50%	21/4/23	$ 118.58	2	21/4/20	450000	$100
8	2.75%	21/4/24	$ 110.91	2	21/4/20	700000	$100

1. Calculate the yield of each bond as of the 28^thof March.
2. What is the weighted average yield of this portfolio of bonds?
3. If on the 30^thof April all bonds have a yield that is 1% higher, what would the value of the portfolio be? What about if the yield was 1% lower? Graph your results.
4. Using your results from part C, rank the bonds in order of most sensitive to changes in the yield to least sensitive. Explain what characteristics lead to a presence of absence of sensitivity and relate this back to your results.
5. Do you think that the yield on Australian government debt is likely to increase or decrease over the next 9 months? Why?

*** all have to be done in excel