A 30-year maturity bond making annual coupon payments with a coupon rate of 15.0% has duration of 9.41 years and convexity of 129.3. The bond currently sells at a yield to maturity of 11%.

e-1. Find the price of the bond if it's yield to maturity rises to 12%. (Do not round intermediate calculations. Round your answer 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 answer to 2 decimal places.)

Predicted price $

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

Predicted price $

e-4. What is the percent error for each rule? (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
12%	%	%

e-5. Are your conclusions about the accuracy of the two rules consistent with parts (a) (d)?

	Yes
	No