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You have a 25-year maturity, 10.1% coupon, 10.1% yield bond with a duration of 10 years...

You have a 25-year maturity, 10.1% coupon, 10.1% yield bond with a duration of 10 years and a convexity of 135.6. If the interest rate were to fall 126 basis points, your predicted new price for the bond (including convexity) is _________.

a.

$1,114.40

b.

$1,103.64

c.

$1,090.83

d.

$1,125.20
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