Question: PLEASE SHOW ALL EXCEL FORMULAS USED 5. A bond has just been issued. The bond has an annual coupon rate of 8% and coupons are

PLEASE SHOW ALL EXCEL FORMULAS USED

5. A bond has just been issued. The bond has an annual coupon rate of 8% and coupons are paid annually. The bond has a face value of $1,000 and will mature in 10 years. The bonds yield to maturity is 12%.

a.Calculate the actual change in the bonds price as the yield to maturity changes from 12% to 10%.

b. Use the bonds duration to calculate the approximate bond price change as the yield to maturity changes from 12% to 10%.

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