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DO E) None of the above 5. A $5000 bond with a coupon rate of 6.2% paid semiannually has ten years to maturity and a

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DO E) None of the above 5. A $5000 bond with a coupon rate of 6.2% paid semiannually has ten years to maturity and a yield to maturity of 7.4%. If interest rates fall and the yield to maturity decreases by 1.2%, what will happen to the price of the bond? O A) The price of the bond will fall by $418.75. O B) The price of the bond will fall by $293.50. O C) The price of the bond will increase by $418.75. D) The price of the bond will increase by $293.50. O E) None of the above

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