A 30-year maturity bond making annual coupon payments with a coupon rate of 7% has duration of 15.16 years and convexity of 315.56. The bond currently sells at a yield to maturity of 5%.

b. What price would be predicted by the duration rule? (Do not round intermediate calculations. Round your answers to 2 decimal places.

Predicted new price (duration rule) ____

c. What price would be predicted by the duration-with-convexity rule? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Predicted new price (duration with convexity rule) ____

d-1. What is the percent error for each rule? (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Duration rule duration with convexity rule

Percentage Error _____% ____%

e-1. Find the price of the bond if its yield to maturity increases to 6%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Price of the bond ___

e-2. What price would be predicted by the duration rule? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Predicted new price (duration rule) ____

e-3. What price would be predicted by the duration-with-convexity rule? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Predicted new price (duration with convexity rule) ____

e-4. What is the percent error for each rule? (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Duration rule duration with convexity rule

Percentage Error _____% ____%