A certain bond has already duration of 3.25 years and convexity of 12.50, the yield rate before a change was 3%, the bond pays coupon monthly. After a change of yield rate using the formula with duration and convexity calculated that the price of this bond should increased by 3,30944%. What was the change of yield rate?

a.

It increased by 1.5 percentage points

b.

It decreased by 1.5 percentage points.

c.

It decreased by 1 percentage point.

d.

It increased by 1 percentage points