A 30-year maturity bond making annual coupon payments with a coupon rate of 16.3% has duration of 10.54 years and convexity of 161.2. The bond currently sells at a yield to maturity of 9%.

d-1. What is the percent error for each rule? (Enter your answer as a positive value. Do not round intermediate calculations. Round "Duration Rule" to 2 decimal places and "Duration-with-Convexity Rule" to 3 decimal places.)

	Percent Error
YTM	Duration Rule	Duration-with- Convexity Rule
8%	%	%

d-2. What do you conclude about the accuracy of the two rules?

	The duration rule provides more accurate approximations to the actual change in price.
	The duration-with-convexity rule provides more accurate approximations to the actual change in price.