A $5,000 bond with a coupon rate of 5.8% paid semiannually has fourfour years to maturity and a yield to maturity of 6.3%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?

A.

fall by $ 140.4

$140.4

B.

rise by $ 140.4

$140.4

C.

fall by $ 168.48

$168.48

D.

rise by $ 196.56