Urgent HW Question: Solve in exel Please

(4). Using only the Modified duration you calculated above, what should be the approximate percentage change in price of each of these bonds when the yield (1 point) a. increases by 1% b. decreases by 1%

(5). Compute on Sheet 2 the convexity for these two bonds using the templates. (2 points)

(6). On the TOP RIGHT corner of Sheet 2, use to calculate the percentage change in price for each of these two bonds when the yield (2 points) a. increases by 1% b. decreases by 1% Note: D*m is the Modified duration. Even though duration is on another sheet, you still can point to/reference it.

(7). Compare your results in (4) vs (6): If you use only the Modified duration and ignore convexity to calculate the percentage price change for a bond when the yield increases, do you underestimate or overestimate the price change? How about when the yield decreases? Type your answer in a text box. (0.5 points)

wt=PV(Bond)PV(CFt)=PCFt/(1+y)t