The Rapture Marine Corporation has $1,000 face value bonds issued with a 6% coupon. They mature in 10 years, call for semi-annual payments, and currently have a yield to maturity of 8%. What will happen to the price of the bond if the market interest rate suddenly decreases to 4%?

A.The bond price will increase but still trade at a discount.

B.The bond price will increase and trade at a premium

C.The bond price will decrease but still trade at a premium

D.The bond price will decrease and trade at a discount

E. The bond price will remain unchanged