The Rapture Marine Corporation has $1,000 par value bonds issued with a 7.4% coupon rate. The bonds mature in 9 years and make semiannual coupon payments. The yield to maturity is currently at 8.8%. What will happen to the price of the bond if the market yield to maturity suddenly decreases to 6%?

a. The bond price will decrease and trade at a premium.

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

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

d. The bond price will decrease but still trade at a discount.