8. The Federal Reserve raises interest rates; all 10 year maturity bond yields shift up by 1.00%. Additionally, the spread between US Government bonds and investment grade bonds widens by 1.0% and the corporate credit spread between investment grade and high yield bonds widens by 2.0%. Assuming these changes in the yield curve are instantaneous, the price of Bond D (after the Federal Reserve raises rates and the corporate credit spreads widen) is now closest to:

1. $8,754
2. $8,500
3. $8,207
4. $7,245
5. $5,593

Assuming current times 2020