Question 3 A bond with a face value of $1,000 and maturity of exactly 4 years pays 8 annual coupon This bond is currently selling at an annual yield to maturity (YTM) of 9 Answer the following questions for this bond a Calculate the current price of the bond (5 points) b Calculate modied duration of the bond using the timeline method (10 points) c Using just the modied duration, what is the new price of the bond when YTM is 8 75 (5 points) please solve using xcell Question 3 A bond with a face value of $1,000 and maturity of exactly 4 years pays 8 annual coupon This bond is currently selling at an annual yield to maturity (YTM) of 9 Answer the following questions for this bond a Calculate the current price of the bond (5 points) b Calculate modified duration of the bond using the timeline method (10 points) c Using just the modified duration, what is the new price of the bond when YTM is 8 75 (5 points)

Question: Question 3: A bond with a face value of $1,000 and maturity of exactly 4 years pays 8% annual coupon. This bond is currently selling

Question 3: A bond with a face value of $1,000 and maturity of exactly 4 years pays 8% annual coupon. This bond is currently selling at an annual yield-to-maturity (YTM) of 9%. Answer the following questions for this bond. a. Calculate the current price of the bond. (5 points) b. Calculate modified duration of the bond using the timeline method. (10 points) c. Using just the modified duration, what is the new price of the bond when YTM is 8.75%? (5 points)

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