Suppose a bond’s price is expected to decrease by 3% if its market discount rate increases by 50 bps. If the bond’s market discount rate decreases by 50 bps, the bond price is most likely to change...

1. Suppose a bond’s price is expected to decrease by 3% if its market discount rate increases by 50 bps. If the bond’s market discount rate decreases by 50 bps, the bond price is
   most likely
   to change by:

• 3%


• Less than 3%


• More than 3%

 What is the best terminology to describe this pattern (use terminology covered in this unit)? Please explain your answer.