You Buy a Bond for $1,000 from the Federal Government

You buy a bond for $1,000 from the federal government at an interest rate of 7 percent.Suppose immediately after you buy the bond,the market rate of interest increases to 10 percent.The market value of your bond _____

A) will be $1,100.
B) will be less than $1,000.
C) will be more than $1,700.
D) will remain unchanged at $1,000.
E) will first increase to $1,070 and then decrease to $1,007.