The semiannual interest rate would now increase from 2.47% to r = 2 √
1 + 6% − 1 = √
1.06 − 1 ≈ 2.9563%
To get the bond’s new present value, reuse the annuity formula

This bond would have lost $3,951.72, or 4.3% of the original investment.

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PV = C 22 $1,500. [1/(1+r)] [1/(1+2.9563 %) 110 2.9563% $12,823.89 + 1+ T $100,000 (1 + 2.9563%) 10 + $74,725.82 $87,549.70