Consider a $8\%$ coupon, $5$ year bond with a YTM of $10\%$ and semi$-$annual coupon payments. The bond has a regular duration $($e$.$g$.,$ NOT modified duration$)$ of $4\mathrm{.}180.$

Question $21$

$2$ pts

If the YTM on the bond decreases to a new level of $8\%,$ what is the duration$-$approximated percentage price change?

$8\mathrm{.}36\%$

$7\mathrm{.}74\%$

$7\mathrm{.}96\%$

$8\mathrm{.}04\%$

$7\mathrm{.}60\%$

Question $22$

$2$ pts

If the YTM on the bond decreases to a new level of $8\%$ and the bond has a convexity of $19\mathrm{.}574,$ calculate the approximate percentage price change using the convexity adjustment.

$7\mathrm{.}57\%$

$8\mathrm{.}93\%$

$7\mathrm{.}99\%$

$8\mathrm{.}35\%$

$8\mathrm{.}75\%$