a $1,000 face value 5% coupon bond sells at par and has a modified duration D* of 6.

a)if the market yield increases by 0.1% the bonds price will increase by $5

b) if the market yield increase by 0.1% the bonds price will decrease by $6 c) if the market yield increase by 0.1% the bonds price will decrease by $5

d) if the market yield increase by 0.1% the bonds priuce will increase by $6.