A zero$-$coupon bond is maturing in $5$ years. The issuer is rated at BBB$,$ with the

average yield spread with the treasury of $230$ bps$.$ The yield on a five$-$year STRIP is

$2\mathrm{.}5\%.$ Recently, the market condition worsened, and the yield spread of BBB with

the treasury increased to $270$ bps$.$ What's the price change associated with this

market dynamic?

Decline by $1\mathrm{.}93\%$

Decline by $2\mathrm{.}32\%$

Increase by $1\mathrm{.}93\%$

Increase by $2\mathrm{.}32\%$

No change