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