A five year inverse floater that pays an annual coupon og 6%LIBOR is selling at par in a world with a flat yield curve. If interest rates rise 1%, what will happen to the price of the inverse floater?

a. the inverse floater will increase in value by 4.45%

b. the inverse floater will increase in value by 8.90%

c. the inverse floater will decrease in value by 4.45%

d. the inverse floater will decrease in value by 8.90%