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A $5,000 bond with a coupon rate of 6.4% paid semi-annually has four years to maturity and a yield to maturity of 6.2%. If interest

A $5,000 bond with a coupon rate of 6.4% paid semi-annually has four years to maturity and a yield to maturity of 6.2%. 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 $40.49.
	b.	Rise by $142.78.
	c.	Rise by $84.46.
	d.	Fall by $98.64.
	e.	None of the answers are correct.

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