A bond has an annual modified duration of 6.802. Calculate expected percentage price change if the bonds yield-to-maturity decreases by 40 basis points. The bond has an annual convexity of 143. a. What is the convexity effect (i.e., the effect on the change in price due to the convexity alone) for bonds yield-to-maturity decrease of 40 basis points? b. What is the improved estimate of the percentage price change of the bond, considering the convexity as well as the modified duration