# Bond 1 Yield to Maturity10%Coupon rate14%Maturity (Years)12Face value1,000Construct a Two-Way Data Table to demonstrate the impact of the coupon rate and the time to maturity on the bond’s duration using:Coupon Rates of 0%, 5%, 10%, 15%, and 20%.Maturities of 2 years, 4 years, 6 years, 8 years, and 10 years.How is a bond’s duration impacted by varying the coupon rate?How is a bond’s duration impacted by varying the time to maturity?What implications would these impacts have for a bond investor if interest rates change?Please use excel to show work

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 Bond 1 Yield to Maturity 10% Coupon rate 14% Maturity (Years) 12 Face value 1,000
1. Construct a Two-Way Data Table to demonstrate the impact of the coupon rate and the time to maturity on the bond’s duration using:
1. Coupon Rates of 0%, 5%, 10%, 15%, and 20%.
2. Maturities of 2 years, 4 years, 6 years, 8 years, and 10 years.
2. How is a bond’s duration impacted by varying the coupon rate?
3. How is a bond’s duration impacted by varying the time to maturity?
4. What implications would these impacts have for a bond investor if interest rates change?

Please use excel to show work

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Step 1

Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you. If you want remaining sub-parts to be solved, then please resubmit the whole question and specify those sub-parts you want us to solve.

Step 2

Yield to Maturity (rate) = 10%

Face Value (fv) = \$1,000

Coupon Rates = 0%, 5%, 10%, 15% and 20%

Note: Coupon Payment (pmt) is changes from the change in the coupon rate.

Two-way data table is prepared by using excel is as follows:

Price of the Bonds is calculated by using PV function of excel.

To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

Step 3

The result of the above ta...

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