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A $5,000 bond with a coupon rate of 6.4% paid semi-annually has four years to maturity and a yield to maturity of 6.2%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?Group of answer choicesrise by $84.46fall by $98.64fall by $40.49rise by $142.78

Question

A 5,000bondwithacouponrateof6.45,000 bond with a coupon rate of 6.4% paid semi-annually has four years to maturity and a yield to maturity of 6.2%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?Group of answer choicesrise by 84.46fall by 98.64fallby98.64fall by 40.49rise by $142.78

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