Question: Please answer A & B A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 11.27 years and

Please answer A & B
Please answer A & B A 30-year maturity bond making annual coupon

A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 11.27 years and convexity of 183.3. 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.) 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.)

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