Part I Instructions: Using the template provided and the functions specified, please provide the yield to maturity that must be present in the market for a bond to have the following characteristics.

Characteristic	Value
Face Value	$1000
Coupon Rate	5%
Payment Frequency	Semi-Annual
Term to Maturity (years)	15
Price	$902.00

Part II Instructions: Consider the two bonds with the characteristics below. For each bond, please fill out the template to provide a price for that bond in the Excel workbook provided, and then indicate whether that bond is trading at a premium, at par, or at a discount.

Bond	Bond 1	Bond 2
Face Value	$1000	$1000
Coupon Rate	6%	7%
Payment Frequency	Semi-Annual	Semi-Annual
Term to Maturity (years)	10	10
Yield to Maturity	6%	6%

Part III: Consider the two bonds above, and what you know about how duration changes based on bond characteristics. Identify which bond should have a shorter duration based on the characteristics (and your knowledge), and then please calculate both the duration and modified duration for that bond.

Part IV: Using the modified duration you calculated, please provide the expected price change (both in dollar terms and percent change terms) that would result, should the yield to maturity increase by 0.5%.