Question: if possible, please use excel 2. Suppose there are two securities, A and B. Security A is a 3-year security, interest only, annual coupon of
if possible, please use excel
2. Suppose there are two securities, A and B. Security A is a 3-year security, interest only, annual coupon of 9 percent, par value of $10,000. Security B is also a 3-year security, priced at $10,000, and 3 payments of principal and interest of $3,950.55 are to be received annually at the end of each year. a. What is the yield to maturity (i.e, return) on each of these securities? SHOW YouR INPUTS USED ON YOUR CALCULATOR. b. What is the weighted average duration (D) for each of these securities? SHOW YOUR WORK. Hint: See the example on page 16 of the MBS handout from the Eabgrziet al. book, which we covered in class on 11/7/23
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