Consider a 5-year 8.5% coupon bond (assume annual coupons) priced to yield a 10% per annum, with a par value of $100 and a price of $94.3138. A risk analyst has computed the following information:

| Macaulay Duration | 4.2518 |

|-------------------|--------|

| Modified Duration | 3.8653 |

| Convexity | 24.0839 |

| Modified Convexity| 21.8945 |

Which pair of duration and convexity should the risk analyst use in computing the duration-convexity approximation for the capital loss if the yield were to change to 10.50% per annum? And what is the estimated dollar amount of the capital loss?