An analyst determines that a 5.50% coupon option-free bond, maturing in seven years, would experience a 3% decrease in price if market interest rates rise by 50 basis points. If market interest rates instead fall by 50 basis points, the bond's price would increase by ______.

Explanation: The bond is option-free and will therefore exhibit positive convexity. An equal change in rates will produce a greater percentage gain when rates decrease than the percentage loss produced when rates increase.