Consider a 3-year 14 coupon bond with a face value of $100. suppose that yield on the bond is 10% per annum with continous compounding. The bond pays coupon every 6 months. Use the modified duration to calculate the effect on the bond's price for a 0.1% increase in its yield.

a. An increase of $0.27 b. An decrease of $0.54 c. A decrease of $0.27 d. A decrease of $0.57