Here is the formula for estimating bond price changes using both modified duration and an adjustment for convexity: P/P = -D*y + C (y)²

A bond is described as follows:

1. 1. 30-year bond w/8% coupon, 8% YTM trading at par = $1000
   2. Modified duration = 11.26 years
   3. Convexity = 212.4
2. If YTM rises to 10%, how much would you expect to lose?
   1. In percentage terms:
   2. In dollars and cents: