A 30-year-old maturity bond making annual coupon payments at 12% has a duration of 11.54 years and convexity of 192.4. The bond currently sells at a yield to maturity of 8%. The price of the bond if its yield to maturity falls to 7% or rises to 9% is

Yield to maturity Price

7% 1620.45

8% 1,450.31

9% 1,308.21

What prices for the bond at these new yields would be predicted by the duration rule and the duration-with convexity rule? what is the percentage error for each rule?