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A 1000 bond with a coupon rate of 5.1% paid semiannually has two years to maturity and a yield to maturity of 6.8%. If interest

A 1000 bond with a coupon rate of 5.1% paid semiannually has two years to maturity and a yield to maturity of 6.8%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?

a) rise by $20.4

b) rise by $14.57

c) fall by $17.48

d) fall by 14.57

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