Change in the price of the bond based on duration

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Given the following information on a bond, if the interest rate increases by 1% (that is, from 5% to 6%), what is the change in the price of the bond based on duration?

Current market price = $950

Duration, D, = 7.5

Yield to maturity = 5%

Select one:

a. An increase of $64.00

b. An increase of $70.23

c. A decrease of $64.00

d. A decrease of $73.98

e. A decrease of $67.86

Reference no: EM131628335

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