A $4000 bond with a coupon rate of 6.6% paid semi-annually has five years to maturity and a yield to maturity of 6.4%. If interest rates fall and the yield to maturity decreases by 0.9%, what will happen to the price of the bond?

Question 49 options:

1)	The price of the bond will not change.
2)	fall by $149.33
3)	fall by $40.49
4)	rise by $156.31
5)	rise by $84.46