Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Help me solve this problem using excel formulas please: for Macaulay Duration =Duration( ) and for Modified Duration = Mduration () but the intered value is wrong!

A
B
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
Yield 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
4.80
6.78
4.60
D
E
F
H
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Transcribed Image Text:A B 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 Yield 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 4.80 6.78 4.60 D E F H
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