MLK Bank has an asset portfolio that consists of $$60$ million of $30-$year, $6$ percent annual coupon, $$1,000$ bonds that sell at par.

a$-1.$ What will be the bonds' new prices if market yields change immediately by $+-0\mathrm{.}10$ percent?

a$-2.$ What will be the new prices if market yields change immediately by $+-2\mathrm{.}00$ percent?

b$-1.$ The duration of these bonds is $14\mathrm{.}5907$ years. What are the predicted bond prices in each of the four cases using the duration rule?

b$-2.$ What is the amount of error between the duration prediction and the actual market values?

Complete this question by entering your answers in the tabs below.

Required $B2$

What is the amount of error between the duration prediction and the actual market values? $($Do not round intermediate calculations. Enter all answers as positive numbers. Round your answers to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16))$

$\backslash$table$[[,$Amount of Error$],[At+0\mathrm{.}10\%,],[At-0\mathrm{.}10\%,0\mathrm{.}15],[At+2\mathrm{.}0\%,50\mathrm{.}14],[At-2\mathrm{.}0\%,70\mathrm{.}54]]$