Interest rate risk - Excel ? HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in % Arial - 12 M BIU- Cells B- A A % A. Alignment Number Conditional Format as Cell Formatting Table Styles Styles Editing board Font v A B D EFGHI J K L M Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam? Of Bond Dave? If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then? Of Bond Dave? All bond price answers should be dollar prices. 4 5 6 7 & 9 10 Bond Sam: Coupon rate Settlement date Maturity date Redemption (% of par) # of coupons per year 6.5% 1/1/2000 1/1/2003 100 2 11 12 13 14 15 16 17 Bond Dave: Coupon rate Settlement date Maturity date Redemption (% of par) Sheet1 6.5% 1/1/2000 1/1/2020 100 READY Attempts) 2/3 100% BIU. Alignment Number . Formatting Table Styles Styles Font K J E F G H I A B Maturity date Redemption (% of par) # of coupons per year D 1/1/2020 100 2 $ Par value for both bonds Current YTM New YTM New YTM 1,000 6.5% 8.5% 4.5% Complete the following analysis. Do not hard code values in your calculations. Leave the "Basis" input blank in the function. All bond prices should be in dollars. You must use the built-in Excel function to answer the bond price questions. Price at current YTM: Price of Bond Sam 27 28 29 30 31 32 Price of Bond Dave Price if YTM increases: Price of Bond Sam 14 Sheet1 READY Altam 2/3 26.090 Arial Cells Ed Da BIU- " Cell A. Alignment Number Conditional Format as Formatting Table Styles Styles board Font 29 E F G H 1 D J K B Price of Bond Sam Price of Bond Dave 1 -2 33 14 Price if YTM increases: Price of Bond Sam Price of Bond Dave 35 36 37 38 30 41 % change in Bond Sam % change in Bond Dave Price if YTM decreases: Price of Bond Sam Price of Bond Dave 44 45 38 39$.$ % change in Bond Sam % change in Bond Dave Sheets REACY Am 2/3 & Prov 2 10 Next >