Question: Suppose there is a 100 bps increase in yields. Which of the following statements best describes the estimated price change on a 10Y semi-annual bond

Suppose there is a 100 bps increase in yields. Which of the following statements best describes the estimated price change on a 10Y semi-annual bond with a modified duration of 7.12

options:

The price increases by 7.12%

The price decreases by 7.12%

The price will remain unchanged

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