Bond XYZ with a face value of $1,000 and a coupon rate of 10% is trading at par. It has a duration of 11. Which one of the following statements regarding the bond is true?

Select one:

A.

If the market yield increases by 1%, the bond's price will increase by approximately $100.

B.

If the market yield increases by 1%, the bond's price will increase by approximately $110.

C.

If the market yield increases by 1%, the bond's price will decrease by approximately $110.

D.

If the market yield increases by 1%, the bond's price will decrease by approximately $100.

E.

We cannot tell from the information provided because we do not know the market yield.