A regional bank bought a Treasury bond with 7.5-year duration. The bond has 10% coupon rate (semiannually) and $100,000 face value. An economist predicts that the market interest rate would increase by 4%. What is the new price of the bond? a. $18,571.43 O b. $20,864.46 OC. $15,000.00 O d. $20,764.46 Oe. $28,571.43 A regional bank bought a Treasury bond with 7.5-year duration. The bond has 10% coupon rate (semiannually) and $100,000 face value. An economist predicts that the market interest rate would increase by 4%. What is the new price of the bond? a. $18,571.43 O b. $20,864.46 OC. $15,000.00 O d. $20,764.46 Oe. $28,571.43