QUESTION 8 The duration of a ten-year, 8 percent coupon bond is 8.91 years when the interest rate is 11 percent. What happens to the price of the bond if the interest rate increases to 12 percent using the duration approximation? The face value is $2000. (Hint/Clarification: Maturity=10 years, Annual coupon rate=8%, Duration=8.91 years) O It stays constant It rises 8.03 percent. It falls 16.05 percent. It rises 16.05 percent. O It rises 2 percent. O it falls 8.03 percent