Question: 2. Suppose that interest rates decrease by 0.001 points from their current level of 8%. What will be the resulting percentage change in the price

2. Suppose that interest rates decrease by 0.001 points from their current level of 8%. What will be the resulting percentage change in the price of a bond with a duration of four years (round to the nearest hundredth)? A. bond price will increase less than 25% B. bond price will increase by between 25% and 50% C. bond price will increase by between .50% and 1.00% D. bond price will increase more than 1.00%

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