Question: Question 29 1 pts Use the bond term's below to answer the question Maturity 6 years Coupon Rate 3% Face value $1,000 Annual Coupons When

Question 29

1 pts

Use the bond term's below to answer the question

Maturity 6 years

Coupon Rate 3%

Face value $1,000

Annual Coupons

When you buy the bond the interest rate is 4%

Right after you buy the bond, the interest rate changes from 4.00% to 5.00% and remains there.

What is the price effect in year 3?

Group of answer choices

-$26.71

-$24.29

-$29.39

-$27.93

-$22.08

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