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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

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?
A. 1026.21
B. 1025.35
C. 1026.50
D. 1027.25

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