A bond for the Chelle Corporation has the following characteristics:

Maturity $-12$ years

Coupon $-13\%$

Yield to maturity $-12\mathrm{.}50\%$

Macaulay duration $-6\mathrm{.}47$ years

Convexity $-55\mathrm{.}25$

Noncallable

Assume bond pays interest semiannually. Use only the data provided in the table above $($in the problem statement$)$ for your calculations.

Calculate the approximate price change for this bond using only its duration, assuming its yield to maturity increased by $150$ basis points. Do not round intermediate calculations. Round your answer to two decimal places. Use a minus sign to enter negative value, if any.

Percentage change in price:

$\%$

When you are dealing with large yield changes to calculate more precise bond price change

$-$Select$-$

on price change.

Calculate the approximate price change for this bond, using only duration, if its yield to maturity declined by $300$ basis points. Do not round intermediate calculations. Round your answer to two decimal places. Use a minus sign to enter negative value, if any.

Percentage change in price:

$\%$

Calculate the approximate price change for this bond using both duration and convexity in the computation, once again assuming that its yield to maturity declined by $300$ basis points. Do not round intermediate calculations. Round your answer to two decimal places. Use a minus sign to enter negative value, if any.

Percentage change in price:

$\%$

Discuss $($without calculations$)$ what would happen to your estimate of the price change if this was a callable bond.

When rates decline, the price of callable bond increases at a

$-$Select$-$

rate than the price of noncallable bond.