QUESTIONS 97 THROUGH 108 RELATE TO FIXED INCOME INVESTMENTS

100.A bond with a par value of $100 matures in 10 years with a coupon of 4.5%, paid semiannually; is priced to yield 5.83%; and has a modified duration of 7.81. If the yield of the bond declines by 0.25%, the approximate percentage price change for the bond is closest to: A. 0.98%. B. 1.95%. C. 3.91%.