单选题 For a given bond, the duration is 8 and the convexity is 50. For a 60 basis point decrease in yield, what is the approximate percentage price change of the bond?

A、

A. 2.52%.
B、

B. 4.98%.
C、

C. 4.62%.

【正确答案】 B

【答案解析】
The estimated price change is-(duration) (△y)+(convexity)×(△y)²=-8×(-0.006) +50×(-0.006)²=+0.0498 or 4.98%.