Question $16$

$1$ pts

A $4-$year, $$1,000-$par$-$value bond was purchased today at a yield$-$to$-$maturity of $15\%.$ You have calculated that the duration of this bond is $3\mathrm{.}37$ years. Now suppose the market interest rate on comparable bonds falls to $14\%.$ Using the duration of the bond, what will be the estimated $\%$ change in price for this bond?

$-3\mathrm{.}4\%$

$4\mathrm{.}1\%$

$3\mathrm{.}9\%$

$2\mathrm{.}9\%$

$3\mathrm{.}2\%$