A

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

bond with a coupon rate of

$5\mathrm{.}55\mathrm{.}5\%$

paid semiannually has

tenten

years to maturity and a yield to maturity of

$7\mathrm{.}57\mathrm{.}5\%.$

If interest rates rise and the yield to maturity increases to

$7\mathrm{.}87\mathrm{.}8\%,$

what will happen to the price of the$$ bond?

Question content area bottom

Part $1$

A$.$

The price of the bond will rise by

$ $93\mathrm{.}6$$$93\mathrm{.}6.$

B$.$

The price of the bond will fall by

$ $112\mathrm{.}32$$$112\mathrm{.}32.$

C$.$

The price of the bond will fall by

$ $93\mathrm{.}6$$$93\mathrm{.}6.$

D$.$

The price of the bond will not change.