On the below question, why isn’t the first term positive? It seems to me it should be (-7.8*-0.01)

). Their answer keeps the negative outside of term. Can someone please explain why

Thanks

A 9-year corporate bond with a 3.25% coupon is priced at €103.96. This bond’s duration and convexity are 7.8 and 69.8. If the bond’s credit spread widens by 100 basis points, the impact on the bondholder’s return is *closest to*:

**A)** −7.80%. **B)** +8.15%. **C)** −7.45%.

**Your answer: B was incorrect. The correct answer was C)** −7.45%.

Return impact ≈ −(Duration × ΔSpread) + (1/2) × (Convexity × (ΔSpread))^{2} ≈ −(7.8 × 0.0100) + (1/2) × (69.8) × (0.0100)^{2} ≈ −0.0780 + 0.0035 ≈ −0.0745 or −7.45%