What Happens to the Price of a Three-Year Bond with an 8

question 87

Multiple Choice

What happens to the price of a three-year bond with an 8% coupon when interest rates change from 8% to 6%?

• A)A price increase of $51.54
• B)A price decrease of $51.54
• C)A price increase of $53.47
• D)No change in price Using the BAII Plus calculator:

---

Definitions:

Brachial Plexus

A network of nerve fibers that runs from the spine, through the neck, to the axilla, and innervates the upper limb.

Sacral Plexus

A network of nerves originating from the lower back, which supplies nerves to the pelvis, buttocks, and the posterior part of the thigh.

Lumbar Plexus

A network of nerve fibers in the lumbar region of the body, providing sensation and movement.

Cervical Plexus

A network of nerves in the neck that supplies movement and sensation to the neck, upper shoulders, and part of the arms.