In early April 2020 Australian 15-year government bonds were trading at a yield-to-maturity of 1.10% p.a., compounding semi-annually. The bonds have a coupon rate of 2.75% p.a., paid semi-annually. Suppose that in one years time 15-year Australian Government bonds (also with a coupon rate of 2.75% p.a., paid semi-annually), are trading at a yield-to-maturity of 1.60% p.a., paid semi-annually. The percentage change in the price of 15-year government bonds over this one year will be

Select one:

a. 3.1%

b. 6.1%

c. 5.1%

d. 4.1%