Dollar Duration = DUR x ( i/1+ i) x P -1.95*(-.04/(1.07)*96.38 =7.025 =7.03 Dollar duration = 7.03 Answer is B increase by 7.03 Solution Dollar Duration = DUR x ( i/1+ i) x P -1.95*(-.04/(1.07)*96.38 =7.025 =7.03 Dollar duration = 7.03 Answer is B increase by 7.03.