Consider a 6% coupon 5-year bond with a $1,000 par value is priced to yield 8 percent. The bond pays coupon semi-annually with a duration of 4.36 years. Calculate the modified duration and convexity of the bond and use them to predict bond price after an increase of interest rates by 200 bps. Compare the predicted bond price to the new bond price (calculated with bond valuation). By how much does the convexity component improve bond price prediction