Question: Finance problem thx! Assume that there exists a bond with duration of 4 (this is the duration, not the modified duration) and convexity of 18.

Finance problem thx!

Finance problem thx! Assume that there exists a bond with duration of

Assume that there exists a bond with duration of 4 (this is the duration, not the modified duration) and convexity of 18. Find by how much the price of the bond will approximately change if the yield to maturity moves (right now) from 6% to 7.5%. Give your answer in percentages, not dollars, using duration and convexity approximations (not true bond price change). (2 points) O A. up by 5.46% OB. down by 5.46% O C. up by 5.66% OD. down by 5.66%

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