Question: Consider a 7% coupon bond maturing in 7 years. The current yield to maturity is 7% and coupons are paid annually. Compute the actual price

Consider a 7% coupon bond maturing in 7 years. The current yield to maturity is 7% and coupons are paid annually. Compute the actual price change (in %) and the approximated price change using the duration formula if interest rates increase to 8%.

Group of answer choices

-5.21%;-5.39%

-4.27%;-4.33%

4.27%; 4.55%

-4.21%;-4.55%

-4.21%;-4.33%

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