Question: A 5 5 , 0 0 0 bond with a coupon rate of 6 % paid semiannualy has ten years to maturly and a yield

A 55,000 bond with a coupon rate of 6% paid semiannualy has ten years to maturly and a yield to maturity of 8.5%. If interest rates rise and the yield to maturty increases to 8.85, what will happen to the price of the bond?
A. fall by $87.60
8. rise by 507.60
C. fall by $105.12
D. The price of the bond will net change.
A 5 5 , 0 0 0 bond with a coupon rate of 6 % paid

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