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:

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