Question: Use two methods including formula and various Excel functions to solve the following problem: Calculate the duration for a $1000, 4-year bond with a 6%

Use two methods including formula and various Excel functions to solve the following problem:

Calculate the duration for a $1000, 4-year bond with a 6% annual coupon, currently selling at par. Use the duration to estimate the percentage change in the bonds price for a decrease in the market interest rate to 4%. Use the bond price volatility equation to compute the bond price volatility. Compare the result with the estimated percentage change in the bond price.

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