A

$ $5$ comma $000$$$5,000$

bond with a coupon rate of

$5\mathrm{.}45\mathrm{.}4\%$

paid semiannually has

fourfour

years to maturity and a yield to maturity of

$66\%.$

If interest rates fall and the yield to maturity decreases by$0\mathrm{.}8\%,$ what will happen to the price of the$$ bond?

Question content area bottom

Part $1$

A$.$

The price of the bond will rise by

$ $197\mathrm{.}39$$$197\mathrm{.}39.$

B$.$

The price of the bond will fall by

$ $169\mathrm{.}19$$$169\mathrm{.}19.$

C$.$

The price of the bond will fall by

$ $140\mathrm{.}99$$$140\mathrm{.}99.$

D$.$

The price of the bond will rise by

$ $140\mathrm{.}99$$$140\mathrm{.}99.$