A $30-$year maturity bond making annual coupon payments with a coupon rate of $15\mathrm{.}0\%$ has duration of $11\mathrm{.}29$ years and convexity of

$184\mathrm{.}0.$ 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.$)$

Answer is complete but not entirely correct.

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.$)$

Answer is complete but not entirely correct.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.$)$

Answer is complete but not entirely correct.

d$-1.$ What is the percent error for each rule, if its yield 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.$)$

Answer is complete but not entirely correct.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