5. Bond A has a 9% annual coupon, while Bond B has a 7% annual coupon. Both bonds have the same maturity of ten years, a face value of $1,000, an 8% yield to maturity, and are noncallable. Which of the following statements is correct? a. b. C. d. If the yield to maturity for both bonds remains at 8%. Bond A's price one year from now will be higher than it is today, but Bond B's price one year from now will be lower than it is today. Bond B has no reinvestment risk if the market rate decreases to 7%. If two years from now, the market rate increases to 9%, Bond A's price will be $1,000. Bond A trades at a discount, whereas bond Btrades at a premium. If the yield to maturity for both bonds immediately decreases to 6%. Bond A's bond will have a larger percentage increase in value