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

A $5,000 bond with a coupon rate of 5.5% paid semiannually has eight years to maturity and a yield to maturity of 8% If interest rates rise and the yield to maturity increases to 8.3%, what will happen to the price of the bond?
A. rise by $78.44
B. fall by $94.13
C. fall by $78.44
D. The price of the bond will not change.
A $ 5 , 0 0 0 bond with a coupon rate of 5 . 5 %

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