Question 1

The bond has a duration of 5 years. Interest rates in the market are 2.6 percent today. Its current market price is $1,075. It has been forecasted that interest rates will rise to 3.6 percent over the next couple of weeks. How will the bond's price change in percentage terms? The bond's price will __________________ by _________ percent. [increase or decrease?]

Please show your work. Write your answers with two decimal points