Use the following data to answer Questions 35 through 37.

An analyst observes a 20-year, 8% option-free bond with semi-annual coupons. The required semiannual-pay yield to maturity on this bond was 8%, but suddenly it drops to 7.25%.

35. As a result of the drop, the price of this bond:

A. will increase.

B. will decrease.

C. will stay the same

36. Prior to the change in the required yield, what was the price of the bond?

A. 92.64.

B.100.00.

C. 107.85.

37. The percentage change in the price of this bond when the rate decreased is closest to:

A. 7.86%

B. 7.79%

C. 8.00%.