Question: A $ 1 , 0 0 0 face, 1 0 - year, 8 . 0 0 % semi - annual coupon, option - free bond

A $1,000 face, 10-year, 8.00% semi-annual coupon, option-free bond is issued at par (market rates are thus 8.00%). Given that the bond price decreased 10.03% when market rates increased 150 basis points (bp), if market yields decrease by 150 bp , the bond's price will:
increase by 10.03%.
decrease by more than 10.03%.
Decrease by 10.03%
increase by more than 10.03%.
A $ 1 , 0 0 0 face, 1 0 - year, 8 . 0 0 % semi -

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