ABC bond has a yield to maturity of 5.5 percent, and 7 years to maturity. The bond has a 6.5 percent coupon, paid semiannually. Its par value is $1,000. Suppose that the market yield suddenly increases to 7.25 percent. By what percent will the bond price change?

a. The bond price will decrease by 9.27 percentb. The bond price will increase by 7.04 percentc. The bond price will decrease by 8.64 percentd. The bond price will increase by 7.16 percente. The bond price will increase by 3.86 percent