Suppose you purchase a perpetuity for $1,000 that pays coupons of $50 per year. If the interest rate changes and becomes 10%, what will happen to the price of the perpetuity?
A. The price will not change and will always equal $1,000 because this bond always pays $50 per year. B. The price will rise by $50. C. The price will fall by $50. D. The price will rise by $500. E. The price will fall by $500.