[Solved] Problem 16:13 A 30-year maturity bond mak

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Problem 16:13 A 30-year maturity bond making annual coupon payments with a coupon rate of 9.5% has duration of 13.53 years and convexity of 258.03.

Problem 16:13

A 30-year maturity bond making annual coupon payments with a coupon rate of 9.5% has duration of 13.53 years and convexity of 258.03. The bond currently sells at a yield to maturity of 6%.

What is the percentage error for each rule? (Negative answers should be indicated by a minus sign. Round your answers to 2 decimal places. Omit the "%" sign in your response.)

Duration Rule Duration-with- convexity Rule

Percent error for 5% YTM % %

Percent error for 7% YTM % %

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