A 10.5-year maturity zero-coupon bond selling at a yield to maturity of 6.5% (effective annual yield) has convexity of 164.7 and modified duration of 9.56 years. A 30-year maturity 8% coupon bond making annual coupon payments also selling at a yield to maturity of 6.5% has nearly identical duration9.54 yearsbut considerably higher convexity of 243.9. a. Suppose the yield to maturity on both bonds increases 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 % b. Suppose the yield to maturity on both bonds decreases to 5.5%. 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 %