Question: A $ 5 , 0 0 0 bond with a coupon rate of 5 . 9 % paid semiannually has four years to maturity and

A $5,000 bond with a coupon rate of 5.9% paid semiannually has four years to maturity and a yield to maturity of 6%. 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 fall by $170.99.
B. The price of the bond will fall by $142.49.
C. The price of the bond will rise by $142.49.
D. The price of the bond will rise by $199.49.
A $ 5 , 0 0 0 bond with a coupon rate of 5 . 9 %

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