Question: Consider a five-year bond with a $1,000 face value, $40 coupon and 4% yield-to-maturity. If the maturity is changed to six years, keeping the same

  1. Consider a five-year bond with a $1,000 face value, $40 coupon and 4% yield-to-maturity. If the maturity is changed to six years, keeping the same y-t-m, its price:
    1. decreases
    2. increases
    3. remains the same

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