Swanson, Inc. bonds have a 12% coupon rate with semi-annual coupon payments. They have 15 years to maturity and a par value of $1,000. Your required rate of return is 8%. Suppose you decide to buy the bond, and immediately afterwards interest rates decrease by 1.0%. How much value has the bond gained or lost? (Hint: find the price of the bond before and after the change in interest rates.)

a) Loss of $113.96

b)Gain of $113.96 O

c)Loss of $84.87

d)Gain of $84.87