**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:

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

Subject | Business |

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

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