Please show formulas in excel A five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of each year.
Yield-to-maturity of the bond			11%
Time to maturity of contract (years)			5
Annual coupon rate (%)			8%
Face value of the bond			$1,000
Time (years)	Cash flows ($)	Discount factor	PV of cash flows ($)	Weight	Time x Weight
1	$80
2	$80
3	$80
4	$80
5	$1,080
Total			$0.00	0.000	0.000
Calculate the discount factor for each year, the present value of each cash flow, the corresponding weight, and the Time x Weight.
What is the bond's price?
What is the bond's duration?
Assume that interest rates in the market change, and the bond's yield decreases by 0.2%.
Change in the bond's yield			-0.2%
What is the effect on the bond's price of the decrease in its yield if you use the duration approximation for the change in price?