Question: Bond Math: Based on the information provided, what would the estimated percentage price change of the bond be for a rate shock of -100BP and

Bond Math: Based on the information provided, what would the estimated percentage price change of the bond be for a rate shock of -100BP and +200BP rate change? Duration = 3.68 Convexity = -2.45 Current Book Value of Bond = $5 million Current (Base Case) Market Value of Bond = $6 million

Group of answer choices

-100BP = 0.62%, +200BP = -8.00%

-100BP = 1.23%, +200BP = -9.81%

-100BP = -0.42%, +200BP = +7.78%

-100BP = -1.23%, +200BP = +9.81%

-100BP = 0.52%, +200BP = -7.00%

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