A $1,000 bond with a coupon rate of 5.2% paid semiannually has two years to maturity and a yield to maturity of 7.5%. If interest rates rise and the yield to maturity increases to 7.8%, what will happen to the price of the bond?

A.

The price of the bond will fall by $4.24.

B.

The price of the bond will rise by $3.54.

C.

The price of the bond will fall by $3.54.

D.

The price of the bond will not change.