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Question 18 (5 points) Listen A $1,000 bond with a coupon rate of 7.20% paid semiannually has 10 years to maturity and a Yield-to-Maturity of
Question 18 (5 points) Listen A $1,000 bond with a coupon rate of 7.20% paid semiannually has 10 years to maturity and a Yield-to-Maturity of 8.30%. If interest rates rise and the Yield-to- Maturity increases to 8.60%, what will happen to the price of the bond? OA) The price of the bond will fall by $17.03 B) The price of the bond will fall by $23.29 C) The price of the bond will not change. OD) The price of the bond will fall by $18.89 E) The price of the bond will fall by $15.78
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