A Perpetuity Bond Is Sold with the Following Terms: Coupon

A perpetuity bond is sold with the following terms: Coupon rate = 5% and face value = $1,000. Five years after the bond is issued, the market rate of interest on similar bonds is 6%. Which statement accurately describes the situation if the bond is sold in the secondary bond market at that time (5 years after its initial issue) ?

A) The annual interest payment will rise from $50 to $60.
B) The face value will fall from $1,000 to $833.33.
C) The bond will sell for about $833.33 in the secondary market.
D) The annual interest rate will fall from 5% to 3%.