Question: (Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH) 7) An investor purchases a 20 year zero-coupon

(Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH)

7) An investor purchases a 20 year zero-coupon bond with a par value of $1,000 and an 6% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and the bond has a new YTM of 5%. By how many dollars did the price of the bond increase (or decrease) by?

$75.54

$128.75

$65.08

$85.83

$157.43

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