Use the following information to calculate the present value of a bond: Par: $1,000 Annual coupon rate: 2.4% Payment frequency: semi-annual Maturity: 8 years Yield to mat: 2.5%

Using the information we have on this bond (and ignoring the effects of convexity), what answer best describes the change in value for the bond above if rates GO DOWN by 50 basis points

An approximate gain of $36

An approximate loss of $36

An approximate loss of $72

An approximate gain of $72