A bond making annual coupon payments of 8% has a modified duration of 9.818 years and convexity of 146.13. The bond currently sells at a yield to maturity of 8%. Using duration and convexity, at what price would you expect the bond to sell if the yield dropped by 50 basis points to 7.5%? What if rates increased by 50 basis points to 8.5%?

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