Question: A $ 1 , 0 0 0 bond with a coupon rate of 6 . 7 % paid semiannually has nine years to maturity and

A $1,000 bond with a coupon rate of 6.7% paid semiannually has nine years to maturity and a yield to maturity of 6.5%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?
A. The price of the bond will rise by $56.18.
B. The price of the bond will fall by $56.18.
C. The price of the bond will rise by $78.65.
D. The price of the bond will fall by $67.42.
A $ 1 , 0 0 0 bond with a coupon rate of 6 . 7 %

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