The Corner Grocer has a 7-year, 6.5 percent semiannual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly increases to 7 percent?

Question 3 options:

A)	The bond price will decrease by 2.36 percent.

B)	The bond price will increase by 1.14 percent.

C)	The bond price will increase by 2.29 percent.

D)	The bond price will decrease by 1.92 percent.

E)	The bond price will decrease by 1.74 percent.