Long Question 2 (20 points) Information pertaining to two US government securities are given below. These bonds were iss

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Long Question 2 20 Points Information Pertaining To Two Us Government Securities Are Given Below These Bonds Were Iss 1 (148.05 KiB) Viewed 20 times

Long Question 2 (20 points) Information pertaining to two US government securities are given below. These bonds were issued a few months prior to the settlement date shown below. Thus, their coupons reflected the market conditions at the time of their respective issuances. (Please feel free to use calculations from the previous question, this is a continuation of the same setting) Coupon Settlement date 2/17/1998. Maturity Price (in PVBP 32nds) 5.375% 1/31/2000 100-00 6.125% 11/15/2027 107-16 Modified Duration (MD) A. What is the PVBP of each of these two securities? Use EXCEL functions and save your work. Interpret the economic meaning of PVBP of each bond. B. What is the MD of each of these two securities? Use EXCEL functions and save your work. Interpret the economic meaning of MD of each bond.