Question: C. Suppose a bonds price is expected to increase by 3% if its market discount rate decreases by 50 bps. If the bonds market discount

C. Suppose a bonds price is expected to increase by 3% if its market discount rate decreases by 50 bps. If the bonds market discount rate increases by 50 bps, the bond price is most likely to change by: 1) 3% 2) Less than 3% 3) More than 3% What is the best terminology to describe this pattern (use terminology covered in this unit)? Please explain your

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