Bond A has a 8% coupon rate, paid annually. Maturity is in three years. The bond sells at par value $1000 and has a convexity of 9.3. The duration of the bond is 2.78. If the interest rate decreases from 8% to 7%, what price would be predicted by the duration-with-convexity rule? O A 1026.50 B. 1025.35 O C. 1026.21 OD. 1027.25 QUESTION 15 You purchase one MBI March 120 put contract for a put premium of $10 (Each stock option contract provides for the right to buy or sell 100 shares of stock). The maximum gain you could obtain from this strategy is O A. $12,000 OB. $1,000 OC. $11,000 D. $120