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You have a 25-year maturity, 10.5% coupon, 10.5% yield bond with a duration of 10 years and a convexity of 136.0. If the interest rate

You have a 25-year maturity, 10.5% coupon, 10.5% yield bond with a duration of 10 years and a convexity of 136.0. If the interest rate were to fall 130 basis points, your predicted new price for the bond (including convexity) is _________.

$1,129.20

$1,090.50

$1,106.21

$1,117.70

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