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Bond ABC has maturity of 3, Macaulay duration of 2.7342, coupon rate of 8%, and yield to maturity of 6%. The bond pays interest semi-annually.

Bond ABC has maturity of 3, Macaulay duration of 2.7342, coupon rate of 8%, and yield to maturity of 6%. The bond pays interest semi-annually. Calculate the duration-predicted percentage price change of bond ABC if yields increase by 50 bps.

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-1.29%

-1.33%

-1.37%

-2.65%

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