Question: Please explain with excel Problem 6) a) Consider a 5-year semiannual bond with a coupon of 5% (annualized) and a yield of 6.00% Calculate its

Please explain with excel Problem 6) a) Consider a 5-year semiannual bond Please explain with excel

Problem 6) a) Consider a 5-year semiannual bond with a coupon of 5% (annualized) and a yield of 6.00% Calculate its price and then its duration. b) Now calculate the price again by changing the yield to 6.50%. Show that AB = -DAY B = holds approximately. What is the error? c) Now calculate the Convexity. Repeat part b) using AB 1 --Day + C(Ay)? B Does this reduce the error

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