A $5000 bond with a coupon rate of 6.4% paid semi annually has four years to maturity and a yield to maturity of 6.2%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?
Options:
1) fall by $98.64
2) fall by $40.49
3) rise by $84.46
4) rise by $142.78