Question: Consider two bonds, A and B . Both bonds presently are selling at their par value of $ 1 , 0 0 0 . Each

Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pays a coupon of $120 annually. Bond A will mature in 6 years, while bond B will mature in 5 years. If market interest rates decrease tomorrow then ___________.
Group of answer choices
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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