8 An 8.5-year maturity zero-coupon bond selling at a yield to maturity of 8.5% (effective annual yield) has convexity of 162.3 and modified duration of 7.56 years. A 30-year maturity 6% coupon bond making annual coupon payments also selling at a yield to maturity of 8.5% has nearly identical duration-7.54 years-but considerably higher convexity of 2371. a. Suppose the yield to maturity on both bonds increases to 9.5 %. What will be the actual percentage capital loss on each bond? What percentage capital loss would be predicted by the duration-with-convexity rule? (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is not complete. Zero Coupon Actual Predicted loss Bond Coupon Bond % % % % b. Suppose the yield to maturity on both bonds decreases to 7.5%. What will be the actual percentage capital loss on each bond? What percentage capital loss would be predicted by the duration-with-convexity rule? (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero Coupon Bond Coupon Bond Actual Predicted % % Returm