Question

pleas the answer using excel

Bond B Settlement Date Maturity Date Coupon Rate Required Return (YTM) Redemption Value Frequency Basis 28/3/19 15/8/34 10.00% 8.00% 1,000 Modified Duration Convexity Predicted % Change

Answer 1

hi

Semi - annual Period	Cash Flow	Discounted Factor	PV of Cash Flow	Weight	Time Weight	Convexity = sum of t*(t+1)*w*1/(1+y)2
(t)				(w)	(t*w)
0.5	50	0.96	48.10	0.04	0.02	0.025418
1	50	0.93	46.25	0.04	0.04	0.065174
1.5	50	0.89	44.45	0.04	0.06	0.117446
2	50	0.86	42.75	0.04	0.07	0.180727
2.5	50	0.82	41.10	0.04	0.09	0.253387
3	50	0.79	39.50	0.03	0.10	0.333975
3.5	50	0.76	38.00	0.03	0.11	0.42164
4	50	0.73	36.54	0.03	0.12	0.514842
4.5	50	0.70	35.13	0.03	0.13	0.612616
5	50	0.68	33.78	0.03	0.14	0.714029
5.5	50	0.65	32.48	0.03	0.15	0.818139
6	50	0.62	31.23	0.03	0.16	0.92418
6.5	50	0.60	30.03	0.03	0.17	1.03149
7	50	0.58	28.88	0.02	0.17	1.139319
7.5	50	0.56	27.77	0.02	0.18	1.247134
8	50	0.53	26.70	0.02	0.18	1.354246
8.5	50	0.51	25.67	0.02	0.19	1.460507
9	50	0.49	24.68	0.02	0.19	1.56503
9.5	50	0.47	23.73	0.02	0.19	1.667807
10	50	0.46	22.82	0.02	0.19	1.768656
10.5	50	0.44	21.94	0.02	0.20	1.866633
11	50	0.42	21.10	0.02	0.20	1.962418
11.5	50	0.41	20.29	0.02	0.20	2.054556
12	50	0.39	19.51	0.02	0.20	2.143906
12.5	50	0.38	18.76	0.02	0.20	2.229954
13	50	0.36	18.04	0.02	0.20	2.312718
13.5	50	0.35	17.34	0.01	0.20	2.391586
14	50	0.33	16.68	0.01	0.20	2.46729
14.5	50	0.32	16.04	0.01	0.20	2.53924
15	1050	0.31	323.72	0.28	4.14	54.74055
			1172.95	1.00	8.60	90.92
	Modified Duration				8.27
	Convexity				22.73
	% change				-3.10