A Bondholder Owns 15-Year Government Bonds with a $5 Million $\Delta$

A bondholder owns 15-year government bonds with a $5 million face value and a 6% coupon that is paid annually. The bonds are currently priced at $550,018.73 with a yield of 5.034%. The bonds have a duration of 10.53 years. If interest rates are projected to increase by 50 basis points, how much will the bondholder gain or lose?

A) $27,571
B) $25,063
C) -$27,571
D) -$25,063
E) $5,313 $ $\Delta$ P = - Dur x ( $\Delta$ R/(1+R) ) x P₀ = -10.53 x (0.0050/1.0534) x 550,018.73= $-27,571