Determine the yield to maturity for this bond. Provide answers in the attached word document in 1 1/2 page. (providecalculation in excel please and any reference).
Question 1 Assume that this bond will mature in precisely 10 years, pay coupons semi-annually, and has a par value of $1000. Determine the yield to maturity for this bond. Question 2 Compute the duration of this bond and use it to estimate the new value of the bond if rates were to suddenly decline by 0.80%. Question 3 Calculate the bond’s value directly (using the present value approach) assuming that rates declined 0.80% from the yield to maturity you estimated in the first question. Question 4 Compare your answers to Questions 2 and 3. Explain the source of any difference. Which is more correct