Question: please answer in Excel format! Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are priced at par value. Bond

please answer in Excel format!

Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are 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 suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then? Bond Dave? Illustrate your answers by graphing bond prices versus YTM. What does this problem telll you about the interest rate risk of longer-term bonds?

please answer in Excel format! Both Bond Sam and Bond Dave have6.5 percent coupons, make semiannual payments, and are priced at par value.

use =price() function for c29

D E F G H I J Bond Sam: Coupon rate Settlement date Maturity date Redemption % of par) # of coupons per year 6.5% 1/1/2000 1/1/2003 100 Bond Dave: Coupon rate Settlement date Maturity date Redemption (% of par) # of coupons per year 6.5% 1/1/2000 1/1/2020 100 $ Par value for both bonds Current YTM New YTM New YTM 1,000 6.5% 8.5% 4.5% D31 Price at current YTM: Price of Bond Sam Price of Bond Dave Price if YTM increases: Price of Bond Sam Price of Bond Dave % change in Bond Sam % change in Bond Dave Price if YTM decreases: Price of Bond Sam Price of Bond Dave % change in Bond Sam % change in Bond Dave ... Sheet1 ... + DEADY

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