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 8.9%. If interest rates rise and the yield to maturity increases to 9.2%, what will happen to the price of the bond?
A. The price of the bond will fall by $20.97.
B. The price of the bond will rise by $17.48.
C. The price of the bond will fall by $17.48.
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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