Question: QUESTION 31 4 points Save Answer Bond A has a 8% coupon rate, paid annually. Maturity is in three years. The bond sells at par

QUESTION 31 4 points Save Answer Bond A has a 8%

QUESTION 31 4 points Save Answer Bond A has a 8% coupon rate, paid annually. Maturity is in three years. The bond sells at par value $1000 and has a convexity of 9.3. The duration of the bond is 2.78. If the interest rate increases from 8% to 9.5%, what price would be predicted by the duration-with-convexity rule? A. 964.42 B. 962.43 C. 963.43 D.965.35

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