Question: Consider a 3 - year bond with a par value of $ 1 , 1 8 0 and an annual coupon of 5 % .

Consider a 3-year bond with a par value of $1,180 and an annual coupon of 5%. If interest rates change from 5% to 3% the bond's price will:
Multiple Choice
increase by $38.24.
decrease by $38.24.
increase by $66.76.
decrease by $66.76.

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