单选题 Consider a bond that pays an annual coupon of 5% and that has three years remaining until maturity. Assume the term structure of interest rates is flat at 6%. If the term structure of interest rates does not change over the next twelve-month interval, the bond's price change (as a percentage of par) will be closest to:

A、

A. -0.84.
B、

B. -0.56.
C、

C. 0.84.

【正确答案】 C

【答案解析】
The bond price change is computed as follows:
Bond Price Change=New Price-Old Price=(5/1.06+105/1.06²)-(5/1.06+5/1.06²+105/1.06³)=98.17-97.33=0.84. The value-0.84 is the correct price change but the sign is wrong.