A bond has a YTM of 6.75%, a modified duration of 14.05 years, a duration of 15 years and a 20 year maturity. By what percentage will the bond's price change if market interest rates decrease by 0.75%?
A) -0.750 percent
B) +0.750 percent
C) +10.53 percent
D) -10.53 percent
Answer: C
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