If the current interest rate is 2% for all maturities, and suppose you own an annual coupon-paying bond with duration of 6 years. By how much will the price of the bond change (approximately) if the interest rate increases by 0.01 percent?

Pick the right answer

a. Change in price = - 6 * 0.01 percent

b. Change in price = - 6 * 0.0001 percent

c. Change in price = - 6 * 0.01/(1+0.02) percent

d. Change in price = - 6 * 0.0001 / (1+0.02) percent