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A $1,000 bond with a coupon rate of 5.9 %paid semiannually has five years to maturity and a yield to maturity of 7.5 %. If

A $1,000 bond with a coupon rate of 5.9 %paid semiannually has five 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. rise by $11.74

B. fall by $11.74

C. fall by $14.08

D. The price of the bond will not change.

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