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A 30-year maturity bond making annual coupon payments with a coupon rate of 14.0% has duration of 11.36 years and convexity of 186.4. The bond

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A 30-year maturity bond making annual coupon payments with a coupon rate of 14.0% has duration of 11.36 years and convexity of 186.4. The bond currently sells at a yield to maturity of 8% Required: o. Find the price of the bond if its yield to maturity falls to 7%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What price would be predicted by the duration rule, if its yield to maturity falls to 7% ? (Do not round intermediote calculations. Round your answer to 2 decimal places.) c. What price would be predicted by the duration-with-convexity rule, if its yield to maturity falls to 7% ? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d.1. What is the percent error for each rule. If its yield to maturity falls to 7% ? (Enter your answers as a positive volue, Do not round intermediate colculations. Round "Durotion Rule" to 2 decimal places ond "Durotion-with-Convexity Rule" to 3 decimal places.)

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