A $5000 bond with a coupon rate of 4.2% paid quarterly has eight years to...
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Finance
A $5000 bond with a coupon rate of 4.2% paid quarterly has eight years to maturity and a yield to maturity of 6.3%. If interest rates rise and the yield to maturity increases to 6.6%, how much will the price of the bond change?
A.
The price will increase by $83.44.
B.
The price will decrease by $84.71.
C.
The price will decrease by $83.44.
D.
The price will decrease by $85.36.
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