A 14.55-year maturity zero-coupon bond selling at a yield to maturity of 7% (effective annual yield) has convexity of 197.6 and modified duration of 13.60 years. A 40-year maturity 5% coupon bond making annual coupon payments also selling at a yield to maturity of 7% has nearly identical modified duration 13.96 years but considerably higher convexity of 338.8 a Suppose the yield to maturity on both bonds increases to 8%. What wil be the actual percentage cap a convexity rule? (Do not round intermediate calculations. Round your answers to 2 decimal places.) oss on each bond what e centage capita oss vould e predict h the duration-with Zero-Coupon Bond Coupon Bond Actual loss i's.dkk.dkxes b. Suppose the yield to maturity on both bond decreases to 6% what will be the actua percentage ca ital gan on each bond? what percentage convexity rule? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a gain would redit he duration with Zero-Coupon Bond Coupon Bond Actual gain Predicted gain