Consider a Six-Year Maturity, $100,000 Face Value Bond That Pays

Multiple Choice

Consider a six-year maturity, $100,000 face value bond that pays a 5 percent fixed coupon annually. What is the percentage price change for the bond if interest rates decline 50 basis points from the original 5 percent?

A) -2.106 percent.
B) +2.579 percent.
C) +0.000 percent.
D) +3.739 percent.
E) +2.444 percent.