Question: Arthur johnson 0 4 / 1 9 / 2 5 9 2 2 PM LINE ) 1 8 of 2 5 This test: 2 5

Arthur johnson
04/19/25922 PM
LINE)
18 of 25
This test: 25 point(0) possble
This question: 1 point(9) possible
A $5,000 bond with a coupon rate of 6.1% paid semiannually has ten years to maturity and a yeld to maturity of 6.2%. If interest rates fall and the yeild to maturity decreases by 0.8%, what will happen to the price of the bond?
A. The price of the bond will rise by $304.58.
B. The price of the bond will fall by $365.49.
C. The price of the bond will rise by $426.41.
D. The price of the bond will fall by $304.56.
Arthur johnson 0 4 / 1 9 / 2 5 9 2 2 PM LINE ) 1

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