Problem 16-23 A 13-year maturity zero-coupon bond selling at a yield to maturity of 9.25% (effective annual yield) has convexity of 161.1 and modified duration of 12.06 years. A 30-year maturity 5.5% coupon bond making annual coupon payments also selling at a yield to maturity of 9.25% has nearly identical duration12.04 yearsbut considerably higher convexity of 233.7. a. Suppose the yield to maturity on both bonds increases to 10.25%. What will be the actual percentage capital loss on each bond? What percentage capital loss would be predicted by the duration-with-convexity rule? (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero Coupon Bond Coupon Bond Actual loss Predicted loss b. Suppose the yield to maturity on both bonds decreases to 8.25%. What will be the actual percentage capital loss on each bond? What percentage capital loss would be predicted by the duration-with-convexity rule? (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero Coupon Bond Coupon Bond Actual gain Predicted gain