Three years ago, you purchased a coupon bond with 20-year maturity, a coupon rate of 4.6% paid annually, and a yield to maturity of 4% per annum. This year, as the RBA increases the cash rate target, the yield to maturity increases to 6% per annum. By how much would the price change from the time you purchased the bond if the face value of the bond is 1000 dollars?

a.

fall by 228.22

b.

rise by 110.73

c.

fall by 242.12

d.

rise by 138.00