Question: A 3 1 , 0 0 0 bond with a coupon mate of 5 . 2 6 paid semiannualy has two years to maturity and

A 31,000 bond with a coupon mate of 5.26 paid semiannualy has two years to maturity and a yield to maturity of 7.7% if interest rases fise and the yield to maturly increases to 896, what will happen to the price of the bond?
A. The price of the bond will rise by $5.28.
n. The rolice ofl the forvel wall fall hy 55.70
C. The price of the bond wall hall by $4.34.
0. The price of the bond will not change.
A 3 1 , 0 0 0 bond with a coupon mate of 5 . 2 6

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