A 30-year maturity bond making annual coupon payments with a coupon rate of 15.0% has duration...

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A 30-year maturity bond making annual coupon payments with acoupon rate of 15.0% has duration of 9.41 years and convexity of129.3. The bond currently sells at a yield to maturity of 11%. a.Find the price of the bond if its yield to maturity falls to 10%.(Do not round intermediate calculations. Round your answer to 2decimal places.) Price of the bond $ b. What price would bepredicted by the duration rule? (Do not round intermediatecalculations. Round your answer to 2 decimal places.) Predictedprice $ c. What price would be predicted by theduration-with-convexity rule? (Do not round intermediatecalculations. Round your answer to 2 decimal places.) Predictedprice $ d-1. What is the percent error for each rule? (Enter youranswer 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.) Percent ErrorYTM Duration Rule Duration-with- Convexity Rule 10% % % d-2. Whatdo you conclude about the accuracy of the two rules? Theduration-with-convexity rule provides more accurate approximationsto the actual change in price. The duration rule provides moreaccurate approximations to the actual change in price. e-1. Findthe price of the bond if it's yield to maturity rises to 12%. (Donot round intermediate calculations. Round your answer to 2 decimalplaces.) Price of the bond $ e-2. What price would be predicted bythe duration rule? (Do not round intermediate calculations. Roundyour answer to 2 decimal places.) Predicted price $ e-3. What pricewould be predicted by the duration-with-convexity rule? (Do notround intermediate calculations. Round your answer to 2 decimalplaces.) Predicted price $ e-4. What is the percent error for eachrule? (Do not round intermediate calculations. Round "DurationRule" to 2 decimal places and "Duration-with-Convexity Rule" to 3decimal places.) Percent Error YTM Duration Rule Duration-with-Convexity Rule 12% % % e-5. Are your conclusions about the accuracyof the two rules consistent with parts (a) – (d)? Yes No

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A 30-year maturity bond making annual coupon payments with acoupon rate of 15.0% has duration of 9.41 years and convexity of129.3. The bond currently sells at a yield to maturity of 11%. a.Find the price of the bond if its yield to maturity falls to 10%.(Do not round intermediate calculations. Round your answer to 2decimal places.) Price of the bond $ b. What price would bepredicted by the duration rule? (Do not round intermediatecalculations. Round your answer to 2 decimal places.) Predictedprice $ c. What price would be predicted by theduration-with-convexity rule? (Do not round intermediatecalculations. Round your answer to 2 decimal places.) Predictedprice $ d-1. What is the percent error for each rule? (Enter youranswer 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.) Percent ErrorYTM Duration Rule Duration-with- Convexity Rule 10% % % d-2. Whatdo you conclude about the accuracy of the two rules? Theduration-with-convexity rule provides more accurate approximationsto the actual change in price. The duration rule provides moreaccurate approximations to the actual change in price. e-1. Findthe price of the bond if it's yield to maturity rises to 12%. (Donot round intermediate calculations. Round your answer to 2 decimalplaces.) Price of the bond $ e-2. What price would be predicted bythe duration rule? (Do not round intermediate calculations. Roundyour answer to 2 decimal places.) Predicted price $ e-3. What pricewould be predicted by the duration-with-convexity rule? (Do notround intermediate calculations. Round your answer to 2 decimalplaces.) Predicted price $ e-4. What is the percent error for eachrule? (Do not round intermediate calculations. Round "DurationRule" to 2 decimal places and "Duration-with-Convexity Rule" to 3decimal places.) Percent Error YTM Duration Rule Duration-with-Convexity Rule 12% % % e-5. Are your conclusions about the accuracyof the two rules consistent with parts (a) – (d)? Yes No