Snyder Investments has purchased a 30-year bond making annual coupon payments with a coupon rate of 12% and a duration of 11.54 years. The bond has a convexity of 192.4; it currently sells at a yield to maturity of 8%. The current price of the bond is $ [Select] If the yield to maturity drops to 7%, the value of the bond will [Select] [Select] %. If you use the duration rule, you predict that the price of the bond will change by [ Select] price will change by [Select] %. If you employ the duration-with-convexity rule, you predict that the by %.

Snyder Investments has purchased a 30 -year bond making annual coupon payments with a coupon rate of 12% and a duration of 11.54 years. The bond has a convexity of 192.4 ; it currently sells at a yield to maturity of 8%. The current price of the bond is $ If the yield to maturity drops to 7%, the value of the bond will by %. If you use the duration rule, you predict that the price of the bond will change by \%. If you employ the duration-with-convexity rule, you predict that th rice will change by %