# Project #63493 - Inestment Excel work ( all I need is to put the Formulas there)

I have all of the correct answers there.Â

All I need from you is to add ( put the formulas in there ) I alreday did F4 till M4 in question 2Â

and here is the questions for both question 1 and 2 :Â

Question 1: Â

1- Using the timeline technique, calculate the dirty and clean price of a semiannual \$1,000 par value bond with four years and sixty days left until maturity (i.e. the next coupon is in paid in 60 days) that pay a coupon of 3.50% and is yielding 5.50%. (You can confirm your answer using the PRICE function.

Question 2:Â

2- You are thinking about buying a bond and you want to consider your interest rate exposure. The bond in question is a semiannual note issued by Bank of America that has a \$1,000 face value, four years left until maturity and pays a coupon rate of 4.375%. It is currently yielding 5.875%. Because of a slowing economy, you expect a 75 basis point downward shift in the yield curve this year. Calculate the following:

1. Price, duration, modified duration and convexity (manually, though you can confirm your answers using the Excel functions or one of the online calculators).
2. the approximate dollar and percentage change in price due to duration and convexity
3. the actual dollar and percentage change in price

 Subject Business Due By (Pacific Time) 03/24/2015 03:00 pm
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