A 14.95-year maturity zero-coupon bond selling at a yield to maturity of 7% (effective annual yield) has convexity of 208.3 and modified duration of 13.97 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 . Required: a. Suppose the yield to maturity on both bonds increases to 8%. i. What will be the actual percentage capital loss on each bond? ii. What percentage capital loss would be predicted by the duration-with-convexity rule? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Suppose the yield to maturity on both bonds decreases to 6%. i. What will be the actual percentage capital gain on each bond? ii. What Dercentace cabital aain would be oredicted bv the duration-with-convexitv rule? b. Suppose the yield to maturity on both bonds decreases to 6%. i. What will be the actual percentage capital gain on each bond? ii. What percentage capital gain would be predicted by the duration-with-convexity rule? (Do not round intermediate calculations. Round your answers to 2 decimal places.)