Jayce Arnold, a CFA candidate, is studying how the market yield environment affects bond prices. She considers a $1000 face value, option-free bond issued at par. Which of the following statements about the bond’s dollar price behavior is most likely accurate when yields rise and fall by 200 basis points, respectively Price will:()
A. decrease by $124, price will increase by $149.
B. increase by $124, price will decrease by $149.
C. decrease by $149, price will increase by $124.