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A $1,000 bond with a coupon rate of 5.8% paid semiannually has two years to maturity and a yield to maturity of 9%. If interest
A
$1,000
bond with a coupon rate of
5.8%
paid semiannually has
two
years to maturity and a yield to maturity of
9%.
If interest rates rise and the yield to maturity increases to
9.3%,
what will happen to the price of the bond?
A.
fall by $6.19
B.
fall by $5.16
C.
rise by $5.16
D.
The price of the bond will not change.
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