Check my work 25 Problem 11-26 (Algo) 33 ints A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 11.27 years and convexity of 183.3. The bond currently sells at a yield to maturity of 8%. 02:20:34 Required: a. Find the price of the bond if its yield to maturity falls to 7%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of the bond eBook Print References b. What price would be predicted by the duration rule, if its yield to maturity falls to 7%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predicted price c. What price would be predicted by the duration-with-convexity rule, if its yield to maturity falls to 7%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predicted price Check my work 25 d-1. What is the percent error for each rule, if its yield to maturity falls to 7%? (Enter your answers as a positive value. Do not round intermediate calculations. Round "Duration Rule" to 2 decimal places and "Duration-with-Convexity Rule" to 3 decimal places.) YTM 3.03 points Percent Error for Duration Rule Percent Error for Duration-with- Convexity Rule 7% X 02:20:25 eBook d-2. What do you conclude about the accuracy of the two rules? Print fo O The duration rule provides more accurate approximations to the actual change in price. The duration-with-convexity rule provides more accurate approximations to the actual change in price. References e-1. Find the price of the bond if it's yield to maturity rises to 9%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of the bond e-2. What price would be predicted by the duration rule, if it's yield to maturity rises to 9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Mc 25 of 33 Next > Check my work 25 e-2. What price would be predicted by the duration rule, if it's yield to maturity rises to 9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3.03 points Predicted price 8 02:20:08 eBook e-3. What price would be predicted by the duration-with-convexity rule, if it's yield to maturity rises to 9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Print Predicted price References e-4. What is the percent error for each rule? (Do not round intermediate calculations. Round "Duration Rule" to 2 decimal places and "Duration-with-Convexity Rule" to 3 decimal places.) YTM Percent Error for Durati Rul Percent Error for Duration-with- Convexity Rule % 9% M Check my work 25 e-3. What price would be predicted by the duration-with-convexity rule, if it's yield to maturity rises to 9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3.03 points Predicted price 8 02:20:03 eBook e-4. What is the percent error for each rule? (Do not round intermediate calculations. Round "Duration Rule" to 2 decimal places and "Duration-with-Convexity Rule" to 3 decimal places.) Print o YTM Percent Error for Duration Rule References Percent Error for Duration-with- Convexity Rule % 9% % e-5. Are your conclusions about the accuracy of the two rules consistent with parts (a) - (d)? O Yes O No