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

Answer a. The bond price will increase by 8.32%

b. The bond price will increase by 7.63%

c. The bond price will decrease by 7.52%

d. The bond price will decrease by 8.02%