Question: Use the bond term's below to answer the question Maturity 5 years Coupon Rate 5% Face value $1,000 Annual Coupons When you buy the bond

Use the bond term's below to answer the question Maturity 5 years Coupon Rate 5% Face value $1,000 Annual Coupons When you buy the bond the interest rate is 5% Right after you buy the bond, the interest rate changes from 5.00% to 4.00% and remains there. What is the price effect in year 2?

Group of answer choices $29.01 $25.23 $30.53 $27.75 $22.93

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