Question: A $ 5 , 0 0 0 bond with a coupon rate of 6 . 1 % paid semiannually has five years to maturity and

A $5,000 bond with a coupon rate of 6.1% paid semiannually has five years to maturity and a yield to maturity of 7.1%. If interest rates rise and the yield to maturity increases to 7.4%, what will happen to the price of the bond?
A. rise by $60.19
B. fall by $72.23
C. fall by $60.19
D. The price of the bond will not change.
A $ 5 , 0 0 0 bond with a coupon rate of 6 . 1 %

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