What is the impact of a 50 basis point increase in interest rates on the net asset value of an open-end bond mutual fund holding a seven year,$100 million face value 7 percent annual coupon bond selling at par? The fund has 10 million shares.
A) An increase of $0.24 per share.
B) A decrease of $0.265 per share.
C) An increase of $0.05 per share.
D) A decrease of $0.05 per share.
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