Question: 1 9 ) If a bond's volatility is 1 0 . 0 0 percent and the interest rate goes down by 0 . 7 5

19) If a bond's volatility is 10.00 percent and the interest rate goes down by 0.75 percent (points), then the price of the bond:
A) decreases by 10.00 percent.
B) decreases by 7.50 percent.
C) increases by 7.50 percent.
D) increases by 0.75 percent.

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