Question: A $ 5 , 0 0 0 bond with a coupon rate of 5 . 4 % paid semiannually has four years to maturity and

A $5,000 bond with a coupon rate of 5.4% paid semiannually has four years to maturity and a yield to maturity of 6.8%. 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 $190.82.
B. The price of the bond will rise by $1363
C. The price of the bond will fall by $163.56.
D. The price of the bond will fall by $136.3.
A $ 5 , 0 0 0 bond with a coupon rate of 5 . 4 %

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