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


B. 1.2% increase

( P/P) = -8(?.0015) = .012

Business

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