A $10,000 bond with a coupon rate of 3.1% paid semi-annually has 10 years to maturity and a yield to maturity of 4.8%.If interest rates rise and the yield to maturity increases to 5.8%,what will happen to the price of the bond?
A) rise by $357.89
B) rise by $126.75
C) rise by $84.78
D) fall by $444.34
E) fall by $689.47
Correct Answer:
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