What will happen to the price of the bond
A $1000 bond with a coupon rate of 5.4% paid semiannually has five years to maturity and a yield to maturity of 7.5%. If interest rates rise and the yield to maturity increases to 7.8%, what will happen to the price of the bond?
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Working in the yard, you feel unpleasantly hot and sweaty when you come in the house, so you take a shower and begin to feel better.