A12.75-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield) has convexity of 150.3 and modified duration of 11.81 years. a 30-year maturity 6% coupon bond making annual coupon payments also selling at a yield to maturity of 8% has nearly identical modified durationâ-11.79 yearsâ-but considerably higher convexity of 231.2. a. suppose the yield to maturity on both bonds increases to 9%. what will be the actual percentage capital loss on each bond? what percentage capital loss would be predicted by the duration-with-convexity rule? (do not round intermediate calculations. round your answers to 2 decimal places.) b. suppose the yield to maturity on both bonds decreases to 7%. what will be the actual percentage capital gain on each bond? what percentage capital gain would be predicted by the duration-with-convexity rule? (do not round intermediate calculations. round your answers to 2 decimal places.)

a

b

b

a

c

b

d

d

none of these are correct, as they are all sources of american law

a

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.