Please use formulas on the excel sheet.

Thank you!!

5. You have two bonds with the following characteristics: Bond A Bond B 4.4% Characteristics Coupon Years to Maturity Par Value Price 5.5% 5 7.5 $1,000 $902.00 $1,000 $911.00 a. What are the bond durations? b. If rates rise to 4.5%, what are the new prices for each bond? D F H B a. Duration A B B b. Price A B 3 4.400% 1,000.00 5.500% 1,000.00 (902.00) (911.00) 5 1 2 3 4 5 6. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 YTM Coupon Par Cash Flows: Purchase price 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 3.5 6.0 6.5 7.0 7.5 New Price is when rates rise to 25 26 27 28