Help me solve this problem using excel formulas please: for Macaulay Duration =Duration( ) and for Modified Duration = Mduration () but the intered value is wrong! ABConsider the following newly issued bonds:InputsSettlement DateTagliaferro Incorporated 10 Year Bond1/1/2020Rigsby and Pelt Corporation 5 Year Note1/1/2020Maturity Date1/1/20301/1/2025Coupon Rate7.50%1.46%Coupons per Year22Market DataYield to Maturity8.68%Risk-Free Rate0.97%Required:Note: Use cells A2 to B12 from the given information to complete this question.Using any necessary data above, calculate the Macaulay Duration of each bond. Then, use the MacaulayDuration to solve for the Modified Duration.Tagliaferro Incorporated 10 Year BondRigsby and Pelt Corporation 5 Year NoteMacaulay DurationModified Duration7.084.806.784.60DEFH

Duration of bond shows the weighted period required to recover all cash flows from the bond and that…

Consider the following newly issued bonds: Inputs Settlement Date Tagliaferro Incorporated 10 Year Bond 1/1/2020 Rigsby and Pelt Corporation 5 Year Note 1/1/2020 Maturity Date 1/1/2030 1/1/2025 Coupon Rate 7.50% 1.46% Coupons per Year 2 2 Market Data ield to Maturity 8.68% Risk-Free Rate 0.97% Required: Note: Use cells A2 to B12 from the given information to complete this question. Using any necessary data above, calculate the Macaulay Duration of each bond. Then, use the Macaulay Duration to solve for the Modified Duration. Tagliaferro Incorporated 10 Year Bond Rigsby and Pelt Corporation 5 Year Note Macaulay Duration Modified Duration 7.08 6.780 4.80 4.60

Consider the following newly issued bonds: Inputs Settlement Date Tagliaferro Incorporated 10 Year Bond 1/1/2020 Rigsby and Pelt Corporation 5 Year Note 1/1/2020 Maturity Date 1/1/2030 1/1/2025 Coupon Rate 7.50% 1.46% Coupons per Year 2 2 Market Data ield to Maturity 8.68% Risk-Free Rate 0.97% Required: Note: Use cells A2 to B12 from the given information to complete this question. Using any necessary data above, calculate the Macaulay Duration of each bond. Then, use the Macaulay Duration to solve for the Modified Duration. Tagliaferro Incorporated 10 Year Bond Rigsby and Pelt Corporation 5 Year Note Macaulay Duration Modified Duration 7.08 6.780 4.80 4.60

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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