Claire's Cautious Computers, Inc. has a semi-annual corporate bond with a coupon rate of 4.9%, and a bond yield of 16.2%. Teagan has estimated the Macaulay duration of the bond is 13.97 years. If the yield to maturity decreases by 20 basis points, what is the percentage change in the bond price? (1 basis point=0.0001) Select one: O a. 2.66% O b. 2.79% O C. O d. O e. O f. O g. cannot be solved without the bond maturity 0.00% -2.40% 2.40% 2.53%

Claire's Cautious Computers, Inc. has a semi-annual corporate bond with a coupon rate of 4.9%, and a bond yield of 16.2%. Teagan has estimated the Macaulay duration of the bond is 73.97 years. If the yield to maturity decreases by 20 basis points, what is the percentage change in the bond price? ( 1 basis point =0.0001 ) Select one: a. 2.66% b. 2.79% c. cannot be solved without the bond maturity d. 0.00% e. 2.40% f. 2.40% g. 2.53%