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A semiannual coupon bond has a 2.25 percent yield to maturity and a price of $1,350. Interest rates are now projected to increase 50 basis

A semiannual coupon bond has a 2.25 percent yield to maturity and a price of $1,350. Interest rates are now projected to increase 50 basis points. The bond's duration is 15 years. What is the predicted new bond price after the interest rate change?

Select one:

a.

$985.28

b.

$975.40

c.

$1,164.51

d.

$1,249.88

e.

$1057.29

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