a 12.75-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield) has convexity of 150.3 and modified duration of 11.81 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 -11.79 years--but considerably higher convexity of 231.2

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? (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. Suppose the vield to maturity on both bonds decreases to 7%. What will be the actual percentage capital gain on each bond? What percentage capital gain would be predicted by the duration-with convexity rule? (Inout all amounts as positive values. Do not round intermediate calculations. Round our answers to 2 decimal places.

A 12.75-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield) has convexity of 150.3 and modified duration a. Suppose the yield to maturity on both bonds increases to 9%. What will be the actual percentage capital loss on each bond? What percentage b. Suppose the yield to maturity on both bonds decreases to 7\%. What will be the actual percentage capital gain on each bond? What percentage Yorn cominns hand