A $5,000 bond with a coupon rate of 5.4% paid semiannually has eight years to maturity and a yield to maturity of 6.5%.

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 $ 243.62

B.

rise by $ 341.07

C.

fall by $ 243.62

D.

fall by $ 292.35