Consider a Security with a Duration of 2

Multiple Choice

Consider a security with a duration of 2.78 years.The current interest rate level is 10% per annum.How does the price of the security change if interest rates decrease by 100 basis points (round to two decimals) ?

A) The price of the security will decrease by 1%.
B) The price of the security will increase by 1%.
C) The price of the security will decrease by 2.50%.
D) The price of the security will increase by 2.50%.