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

Consider a 5-year bond with a par value of $1,000 and an 8% annual coupon. If interest rates change from 8% to 7% the bond's price will:
a.
decrease by $53.46.
b.
decrease by $41.00.
c.
increase by $41.00.
d.
increase by $53.46.

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