A $12\mathrm{.}75-$year maturity zero$-$coupon bond selling at a yield to maturity of $8\%($effective annual yield$)$ has convexity of $150\mathrm{.}3$ and modified duration of $11\mathrm{.}81$ years. A $30-$year maturity $6\%$ coupon bond

making annual coupon payments also selling at a yield to maturity of $8\%$ has nearly identical duration $-11\mathrm{.}79$ years$--$but considerably higher convexity of $231\mathrm{.}2.$ Only use excel to find these anseres and show formulas

A$.$ Suppose the vield to maturitv on both bonds increases to $9\%.$ What will be the actual percentage capital loss on each bond? What percentage capital loss would be predicted by the duration$-$with convexity rule? B$)$repeat part $($a$)$ but this time assume the yield to maturity decreases to $7\%.$ C$)$ Compare the performance of the two bonds in the two scenarios, one involving an increase in rates, the other a decrease. Based on the comparative investment performance, explain the attraction of convexity. D$)$ in view of your answer to $($C$)$ do you thinkk it would be possible for two bonds with equal duration but different convexity to be priced initially at the same yield to maturity if the yields on both bonds always increased or decreased by equal amounts, as in this example