Explanation:

Option A is correct. The formula $\Delta P = -P \times \Delta y \times D$ shows that for a given duration and yield change, the price change is proportional to the current price P. Therefore, all else equal, a bond with a higher current price will experience a larger absolute price change for the same parallel yield curve movement.

Key points:

• The formula clearly shows price change magnitude depends on P, Δy, and D
• For identical duration and yield change, higher P means larger |ΔP|
• Upward parallel yield curve movements (positive Δy) result in negative price changes, making bonds cheaper
• This relationship holds regardless of convexity considerations for small yield changes

Options B, C, and D are incorrect because:

• B: Duration doesn't "dominate" - both P and D are multiplicative factors
• C: Higher priced bonds don't necessarily have lower duration
• D: The relationship holds generally for parallel yield curve movements, not just for bonds with positive convexity