IBM bonds have a coupon rate of 10% and coupons are paid annually. The par value is $1,000 and the bond has 10 years to maturity. The current yield to maturity is 10%. Now consider that interest rates go up by 1%. What is the % change in the bond value?

Approximately 8% increase.

Approximately 5% decrease.

Approximately 9% decrease.

Approximately 6% decrease.

Approximately 7% increase.