a) GM has issued bonds that currently have a yield-to-maturity of 4%. These bonds have a modified duration of 6.15 and a convexity measure of 46. Approximate the percentage change in the price of these bonds if the yield-to-maturity increases to 4.75%. Please write your answer using at least 3 decimal places.

b) Using the information from the previous problem and assuming that the current price of the GM bond is $1,085, calculate the new price if the yield-to-maturity increases to 4.75%.