Suppose at market opening tomorrow, the market price for bond X is $971. If the Fed announces later of the day that it will work to decrease interest rates shortly, how do you expect the market price of this bond to change?

Group of answer choices:

1)Its price will drop.

2) Its price will not be affected because the coupons and par do not change.

3) Its price will rise.

4) Its change will be random.