The (flat) price on a fixed-rate corporate bond falls one day from 92.25 to 91.25 per 100 of par value because of poor earnings and an unexpected ratings down- grade of the issuer. The (annual)...

Extracted text: The (flat) price on a fixed-rate corporate bond falls one day from 92.25 to 91.25 per 100 of par value because of poor earnings and an unexpected ratings down- grade of the issuer. The (annual) modified duration for the bond is 7.24. Which of the following is closest to the estimated change in the credit spread on the corporate bond, assuming benchmark yields are unchanged? A 15 bps B 100 bps C 108 bps