Question: Consider the 2 bonds (A & B) **B is bond on the right** Bond A Price $1,000 $1,000 Par value $1,000 $1,000 Annual Interest Payment
Consider the 2 bonds (A & B) **B is bond on the right**
| Bond A | ||
| Price | $1,000 | $1,000 |
| Par value | $1,000 | $1,000 |
| Annual Interest Payment | $90 | $90 |
| Maturity | 17 years | 28 years |
If the yields to maturity on the two bonds change from 9% to 10%, which of the following Is true
both bonds will increase in value, but bond A will increase more than bond B.
both bonds will decrease in value, but bond A will decrease more than bond B.
both bonds will increase in value, but bond B will increase more than bond A
both bonds will decrease in value, but bond B will decrease more than bond A
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