Please answer the following question: The modified duration and convexity of a 6%, 25 year bond selling to yield 9% is 10.62 and 91.46 respectively. If the required yield increases by 300 basis points from 9% to 12% what is the approximate percentage change in the price of the bond due to a) duration, b) convexity, c) duration and convexity? d) If the actual change is -26.50%, compare your results from a) and c) which provides a better approximation?

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A: MS-Excel --> Formulas --> Financials --> PVTherefore, the price of the bond is $1,069.96.

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