If the current interest rate is 5% for all maturities and you annual coupon-paying bond has a duration of 5.33 years, how much will the price of the bond change (approximately) if the interest rate increase by 1 basis point (1/100 of a percent)?

Select one:

a. Percentage change in price = - 5.33 * 0.0001 / 1.05

b. Percentage change in price = - 5.33 * 0.0001

c. Percentage change in price = - 5.33 * 0.01 / 1.05

d. Percentage change in price = - 5.33 * 0.01