A $30-$year$-$maturity bond making annual coupon payments with a coupon rate of $9\mathrm{.}2\%$ has duration of $10\mathrm{.}46$ years and convexity of

$160\mathrm{.}31.$ The bond currently sells at a yield to maturity of $10\%.$

Required:

a$.$ Find the price of the bond if its yield to maturity falls to $9\%.$

b$.$ What price would be predicted by the duration rule?

c$.$ What price would be predicted by the duration$-$with$-$convexity rule?

d$-1.$ What is the percent error for each rule?

d$-2.$ What do you conclude about the accuracy of the two rules?

e$-1.$ Find the price of the bond if its yield to maturity increases to $11\%.$

e$-2.$ What price would be predicted by the duration rule?

e$-3.$ What price would be predicted by the duration$-$with$-$convexity rule?

e$-4.$ What is the percent error for each rule?

e$-5.$ Are your conclusions about the accuracy of the two rules consistent with parts $($a$)-($d$)?$

Answer is not complete.

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

Req $A$

Req B

Req D$2$

Req E$1$

Req E$2$

Req E$3$

Req E$4$

Req E$5$

Find the price of the bond if its yield to maturity increases to $11\%.$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Need E$1-$E$5$