It is July 30, 2017. You have a $10,000 semi-annual bond with a coupon rate of 7.625% which matures July 17, 2037. The bond is priced to yield 14.750%, the duration is 7.50 years, and the convexity is 86.04 years squared. Using a duration estimate only, we predict that if market yields decrease by 100 basis points then the price of this bond will increase by Type: Calculated Points Awarded: 0/3 Your Answer(s): Correct Answer(s): : (correct) 6.985 % The convexity correction is calculated as (correct) 0.373 % So the total increase in price is predicted to be (correct) 7.358 %