You have a 25-year maturity 10% coupon, 10% yield bond with duration of 10 years and a convexity of 135.50. If the interest rate were to fall 125 basis points your predicted new price for the bond (including convexity) is ________.
A) $1098.45
B) $1104.56
C) $1113.41
D) $1124.20
Correct Answer:
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