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A 30-year bond making annual payments has a coupon rate of 12%, a duration of 11.54years, and convexity of 192.4. The bond is currently selling

A 30-year bond making annual payments has a coupon rate of 12%, a duration of 11.54years, and convexity of 192.4. The bond is currently selling at a yield to maturity of 8%. Use the duration-with -convexity approximation to predict the new price of the bond if the yield to maturity declines from 8% to 7%. Assume a face value of 1000.

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