Chapter 15 - Duration
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The price quote of the Discovery Cafe Bond should be 102.000000
  Quote $10,000 Bond
Base Price: 102.000000 $10,200.00
62/180 days accrued interest: 1.033333 $103.33
Invoice Price: 103.033333 $10,303.33
Yield to Maturity: 5.41186%

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In Table 15-4: The subtitle should be PV not NPV and the price of the bond should be P = $10,303.33 rather than $10,303,33.

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The last paragraph should read:

The convexity of the bond at 5% is calculated as 1,021 yr2.. We can see that the duration of 17.0 years, relevant when the bond is priced to yield 5%, becomes increasingly irrelevant as we move away from the 5% valuation, from 12.1 years at 8% to 24.0 yrs at 2%.

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Question 15-4

Calculate the percentage price change on a 4.0% corporate bond maturing 30 November 2020 to a 1% increase in yield. The bond is quoted at 102.500 to settle 15 April 2013. The duration is calculated as 6.5664 yrs and the convexity at 50.8725.

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Question 15-5

Calculate the percentage price change on a 4.0% corporate bond maturing 30 November 2050 to a 1% increase in yield. The bond is quoted at 102.500 to settle 15 April 2013. The duration is calculated as 19.6854 yrs and the convexity at 575.7889.

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C.   Set the Titlebars. Select M1:T1

D.   Set the sub-titles. Select M5:T5

E.   Hide the spacers in A1, E1, H1, and L1

H.   Column M now counts from 1 to 100 in increments of 1.

H.   N6 represents the first partial period. Use the days already calculated in the bond profile, so N6 = $G$13/$G$14

K.   We continue with column N,

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AM.   Calculate the convexity into G23. So G23 = T3/($C$8^2)