A 30-year maturity bond making annual coupon payments with a coupon rate of 11.2% has duration of 17.77 years and convexity of 197.6. The bond currently sells at a yield to maturity of 11.2%. Note: The face value of the bond is $1,000. a. Find the price of the bond if its yield to maturity falls to 10.2% or rises to 12.2%. (Round your answers to 2 decimal places. Do not round intermediate calculations. Omit the "$" sign in your response.) > Yield to maturity of 10.2% Yield to maturity of 12.2% b. What prices for the bond at these new yields would be predicted by the duration rule and the duration-with-convexity rule? (Round your answers to 2 decimal places. Do not round intermediate calculations. Omit the "$" sign in your response.) Duration Rule Duration-with- convexity Rule YTM falls to 10.2 YTM increases to 12.2% c. What is the percentage error for each rule? (Negative answers should be indicated by a minus sign. Round your answers to 2 decimal places. Do not round intermediate calculations. Omit the "%" sign in your response.) Duration-with- convexity Rule Duration Rule $ Percent error for 10.2% YTM Percent error for 12.2% YTM d. What do you conclude about the accuracy of the two rules? The duration-with-convexity rule provides more accurate approximations to the true change in price. The duration rule provides more accurate approximations to the true change in price. A 30-year maturity bond making annual coupon payments with a coupon rate of 11.2% has duration of 17.77 years and convexity of 197.6. The bond currently sells at a yield to maturity of 11.2%. Note: The face value of the bond is $1,000. a. Find the price of the bond if its yield to maturity falls to 10.2% or rises to 12.2%. (Round your answers to 2 decimal places. Do not round intermediate calculations. Omit the "$" sign in your response.) > Yield to maturity of 10.2% Yield to maturity of 12.2% b. What prices for the bond at these new yields would be predicted by the duration rule and the duration-with-convexity rule? (Round your answers to 2 decimal places. Do not round intermediate calculations. Omit the "$" sign in your response.) Duration Rule Duration-with- convexity Rule YTM falls to 10.2 YTM increases to 12.2% c. What is the percentage error for each rule? (Negative answers should be indicated by a minus sign. Round your answers to 2 decimal places. Do not round intermediate calculations. Omit the "%" sign in your response.) Duration-with- convexity Rule Duration Rule $ Percent error for 10.2% YTM Percent error for 12.2% YTM d. What do you conclude about the accuracy of the two rules? The duration-with-convexity rule provides more accurate approximations to the true change in price. The duration rule provides more accurate approximations to the true change in price