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Application.SaveAs Marco

For File1.xlsm, I would like to save file as (Application SaveAs) File2.xlsm in the same sub folder that File1.xlsm exists in.  If this possible to accomplish through a macro?  I assume it is.  There must be a way to save the current directory path as a variable and then modify the file name by means of a len function.  I’m just not sure how to piece it together.  Any help would be greatly appreciated.  Thanks!
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nutsch
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Looks like this is going to do the trick.  I'm going to test this and post the points in a few minutes.  Thanks!
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Great solutions!  Thanks guys!!