Question: A $ 5 , 0 0 0 bond with a coupon rate of 7 % paid semiannually has two years to maturity and a yield

A $5,000 bond with a coupon rate of 7% paid semiannually has two years to maturity and a yield to maturity of 7.5%. If interest rates rise and the yield to maturity increases to 7.8%, what will happen to the price of the bond?
A. fall by $27.13
B. rise by $27.13
C. fall by $32.55
D. The price of the bond will not change.
 A $5,000 bond with a coupon rate of 7% paid semiannually

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