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An investor bought $100,000 worth (roughly $750,000 face valuel) of 30-year zero coupon Treasury STRIPS priced to yield 7%. One month later the yield on

An investor bought $100,000 worth (roughly $750,000 face valuel) of 30-year zero coupon Treasury STRIPS priced to yield 7%. One month later the yield on the STRIPS had risen to 8%. Use the modified duration approximation to estimate the approximate new market value shown when the investor looked at the next monthly statement. A. $100,000 B. $99,000 C. $92,600 D. $72,000

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