Question: A bond with face value = 8,000 currently is trading at the price of 104% par. Its modified duration is 3.97 in years and its

A bond with face value = 8,000 currently is trading at the price of 104% par. Its modified duration is 3.97 in years and its convexity is 60.18 in years.

Suppose yield currently is 4.04%, and is expected to change to 2.53%. Calculate the approximate dollar change in price using both duration and convexity.

Assume annual compounding. Round your answer to 2 decimal places.

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