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Using any necessary data above, calculate the Price, the Macaulay Duration and the Modified Duration...

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Finance

Using any necessary data above, calculate the Price, the Macaulay Duration and the Modified Duration for each bond. Then, predict the price change given a change in the prevailing yield. Then, assume the market yield changed, as described below. In the second table, calculate the approximate price change and new price according to duration (the first-order approximation).

Consider the following newly issued bonds:
Inputs Juan Rojo, Incorporated 10-Year Bond McAllister Avionics 9-Year Bond
Settlement Date 01-01-2020 01-01-2020
Maturity Date 01-01-2030 01-01-2029
Coupon Rate 0.080 0.050
Redemption Value 100 100
Coupons per Year 2 1
Market Data
Initial Yield 0.075
Yield Change 0.010
Required:
(Use cells A5 to C13 from the given information to complete this question.)
Juan Rojo, Incorporated 10-Year Bond McAllister Avionics 9-Year Bond
Initial Price
Macaulay Duration
Modified Duration
First-Order Approximation, Price Change Juan Rojo, Incorporated 10-Year Bond McAllister Avionics 9-Year Bond
Price Change
New Price

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