Assume the same information as in the previous question.

A two-year, $1,000 (i.e., face value) bond that pays an annual coupon of 10 percent and trades at a yield of 8 percent. What will be the change in price and the new price using the duration model if interest rates increase to 8.5 percent?

Group of answer choices

A) P = -$9.16 ; P = $990.84

B) P = -$9.16 ; P = $1026.50

C) P = -$8.85 ; P = $991.41

D) P = -$9.59 ; P = $1026.07

E) P = -$9.59 ; P = $990.41