A ten-year bond with a 5% coupon rate is trading with a market yield of 7.75 percent.Coupons are paid annually and the face value is $1,000.What is the percentage change in price if the market yield decreases by 75 basis points?
A) 5.388%.
B) 5.018%.
C) 5.675%.
D) 5.774%.
Correct Answer:
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