单选题 A bond priced at par ($1000) has a modified duration of 8 and a convexity of 50. If interest rates fall 50 basis points, the bond' s price goes to approximately:

A、

A. $1041.25.
B、

B. $1040.00.
C、

C. $958.75.

【正确答案】 A

【答案解析】 125%. The price would thus be $1000×1.04125=$1041.25.