Par value bond XYZ has a modified duration of 6. Which one of the following statements regarding the bond is true?
A.
If the market yield increases by 1% the bond's price will decrease by $60.
B.
If the market yield increases by 1% the bond's price will increase by $50.
C.
If the market yield increases by 1% the bond's price will decrease by $50.
D.
If the market yield increases by 1% the bond's price will increase by $60.
E.
None of these is correct.