# In-the-spreadsheet-below-create-a-Data-Table-in-which-the-duration-is-computed-as-a-function-of-the-coupon-rate-Duration-and-bonds

1. In the spreadsheet below, create a Data Table in which the duration is computed as a function of the coupon rate (coupon = 0%, 1%…11%). Comment on the relation between coupon rate and duration

–> answer to this is attached

**2. What is the effect on a bond’s duration of increasing the bond’s maturity? As in the previous example, use a numerical example and plot the answer. Note that as N–> Infinity, the bond becomes a consol (a bond that has no repayment of principal but an infinite stream of coupon payments). The duration of a consol is given by (1+YTM)/YTM. Show that your numerical answers converge to this formula **

*** **Requirements:

– Formulas must be shown in excel.

-Chegg may be a good reference. Was unable to utilize for problem 2. Problem 1 is correct and needs to be used to do Problem 2.

Let me know of you have any questions