Consider the following bond

Face Value $=$$$1,000$

Coupon $($paid Annually$)=5\mathrm{.}0\%$

Maturity $=5-$ years

Bond Price $=$$$1,000$

$YTM=5\mathrm{.}0\%$

You anticipate interest will rise to $7\%.$ Using the bond's duration, what is the forecasted dollar

value change in the price of the bond?

Choose the closest correct answer below. Note: Answers may be slightly different due to

rounding!

$-86\mathrm{.}7$

$-106\mathrm{.}3$

$-27\mathrm{.}2$

$-36\mathrm{.}3$

$-70\mathrm{.}9$