An 8%, 30-year bond has a yield to maturity of 10% and a modified duration of 8 years. If the market yield drops by 15 basis points, there will be a ________ in the bond's price.
A) 1.15% decrease
B) 1.2% increase
C) 1.53% increase
D) 2.43% decrease
Correct Answer:
Verified
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