d-2. What do you conclude about the accuracy of the two rules? The duration-with-convexity rule provides more accurate approximations to the actual change in price. The duration rule provides more accurate approximations to the actual change in price. e-1. Find the price of the bond if it's yield to maturity rises to 9%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of the bond e-2. What price would be predicted by the duration rule, if it's yield to maturity rises to 9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predicted price

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d-2. What do you conclude about the accuracy of the two rules?
The duration-with-convexity rule provides more accurate approximations to the actual change in price.
The duration rule provides more accurate approximations to the actual change in price.
e-1. Find the price of the bond if it's yield to maturity rises to 9%. (Do not round intermediate calculations. Round your answer to 2
decimal places.)
Price of the bond
e-2. What price would be predicted by the duration rule, if it's yield to maturity rises to 9%? (Do not round intermediate calculations.
Round your answer to 2 decimal places.)
Predicted price
Transcribed Image Text:d-2. What do you conclude about the accuracy of the two rules? The duration-with-convexity rule provides more accurate approximations to the actual change in price. The duration rule provides more accurate approximations to the actual change in price. e-1. Find the price of the bond if it's yield to maturity rises to 9%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of the bond e-2. What price would be predicted by the duration rule, if it's yield to maturity rises to 9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predicted price
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