Extend the coupon stripping model to allow for up to 20 periods and calculate the profit or loss on this scenario. The model (see Figure 6.8) requires the use of dates rather than a fixed number of...

Extend the coupon stripping model to allow for up to 20 periods and calculate the profit or loss on this scenario. The model (see Figure 6.8) requires the use of dates rather than a fixed number of periods, together with IF statements to cease the coupon payments after 31 December 2027 and trigger the principal repayment.

Figure 6.9 shows a portion of the answers with the individual coupons discounted at the individual rate and added together to form a profit.