Problem 11-26 (Algo) A 30-year maturty bond making annual coupon payments with a coupon rate of 15.0% has duration of 11.29 years and convexity of 184.0. The bond currently sells at a yield to maturity of 8% 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 $ 1.241.66 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 d-1. What is the percent error for each rule, if its yleld 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 Percent Error for Duration Rule Percent Error for Duration-with- Convexity Rule 7% % d-2. What do you conclude about the accuracy of the two rules? The duration-with-convexity rule provides more accurate approximations to the actual change in price. The duration rule provides more accurate approximations to the actual change in price. 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.) Predicted price 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.) Predicted price 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 Duration Rule Percent Error for Duration-with- Convexity Rule % 9% %