our client owns a bond fund with a duration of $6\mathrm{.}5.$ If interest rates increase $1\mathrm{.}5\%,$ what is the expected change in price for this fund?

A$)$

$9\mathrm{.}75\%$ decrease

Correct Answer

B$)$

$6\mathrm{.}5\%$ increase

Incorrect Answer

C$)$

$9\mathrm{.}75\%$ increase

Incorrect Answer

D$)$

$6\mathrm{.}5\%$ decrease