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A $1000 bond with a coupon rate of 6.2% paid semiannually has eight years to...

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Finance

  1. A $1000 bond with a coupon rate of 6.2% paid semiannually has eight years to maturity and a yield to maturity of 8.3%. If interest rates rise and the yield to maturity increases to 8.6%, what will happen to the current yield of the bond?

    A.

    The current yield will decrease by 0.129%.
    B.

    The current yield will increase by 0.3%.
    C.

    The current yield will decrease by 0.3%
    D.

    The current yield will increase by 0.129%

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