A $9\mathrm{.}5-$year$-$maturity zero$-$coupon bond selling at a yield to maturity of $7\mathrm{.}5\%($effective annual yield$)$ has convexity of $163\mathrm{.}5$ and modified duration of $8\mathrm{.}56$ years. A $30-$year$-$maturity $7\%$ coupon bond making annual coupon payments also selling at a yield to maturity of $7\mathrm{.}5\%$ has nearly identical duration$-8\mathrm{.}54$ years$-$but considerably higher convexity of $240\mathrm{.}5.$

Required:

a$.$ Suppose the yield to maturity on both bonds increases to $8\mathrm{.}5\%.$ What will be the actual percentage capital loss on each bond? What percentage capital loss would be predicted by the duration$-$with$-$convexity rule?

b$.$ Suppose the yield to maturity on both bonds decreases to $6\mathrm{.}5\%.$ What will be the actual percentage capital loss on each bond? What percentage capital loss would be predicted by the duration$-$with$-$convexity rule?

Complete this question by entering your answers in the tabs below.

Required $A$

Suppose the yield to maturity on both bonds increases to $8\mathrm{.}5\%.$ What will be the actual percentage capital loss on each bond? What percentage capital loss would be predicted by the duration$-$with$-$convexity rule?

Note: Input all amounts as positive values. Do not Yound intermediate calculations. Round your answers to $2$ decimal places.

$\backslash$table$[[,$Zero Coupon Bo$,$Coupon Bond$],[$Actual$,,\%$