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Suppose that you have a 20-year maturity, 12% coupon, 12% yield bond with a duration of 11 years and a convexity of 135.5. If the

Suppose that you have a 20-year maturity, 12% coupon, 12% yield bond with a duration of 11 years and a convexity of 135.5. If the interest rate were to fall 125 basis points, your predicted new price for the bond (including convexity) is ________. This bond sells at par, which means the current price equals its face value, $1,000.

$1,104.56

$1,113.41

$1,124.22

$1,133.35

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