问题详情

Consider a $100 par value bond. It has a 6% coupon paid annually and 10 years to maturity. The bond is valued at $102.08 today with a discount rate of 5.5%. One day later, the discount rate increases to 6.5%. Assuming the discount rate remains at 6.5% over the remaining life of the bond, the price of the bond between today and maturity will most likely:
A. Decline then remain unchanged.
B. Decline then rise.
C. Rise then decline.