$1$ point

You own a $$10,000$ par value bond, coupon $3\%.$ It has $3$ years until maturity, and the current market interest rate is $4\%.$ The Fed raises rates by $50$ basis points, and market rates go up to $4\mathrm{.}50\%.$ What happens to the value of your bond, defined as what someone would pay for it right now, versus before the Fed's action?

$($You can actually do the calcs and prove your answer, but you don't have to$.)$

Value went up$,$ it sells for more.

Value went down, it sells for less.

Value didn't change; I still get the same coupon payments and final payout of par, so what's the difference?