A

$5,000

bond with a coupon rate of

6.2%

paid semiannually has

four

years to maturity and a yield to maturity of

6.8%.

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 $166.37

B.

rise by $138.64

C.

rise by $194.1

D.

fall by