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An analyst gathered the following information about a semiannual coupon bond: Par $ 1 0 0 0 Duration 1 0 Convexity 2 5 Current bond

An analyst gathered the following information about a semiannual coupon bond:
Par $1000
Duration 10
Convexity 25
Current bond price $1100
YTM 10%
If the YTM decrease to 8 percent, the predicted increase in the bond's price is closest to:
a. $155
b. $189
c. $231
d. $300
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