Question: - Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pays interest of $120 annually. Bond

- Consider two bonds, A and B. Both bonds presently are

- Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pays interest of $120 annually. Bond A will mature in 5 years, while bond B will mature in 6 years. If the yields to maturity on the two bonds change from 12% to 14%, A. both bonds will increase in value but bond A will increase more than bond B B. both bonds will increase in value but bond B will increase more than bond A C. both bonds will decrease in value but bond A will decrease more than bond B D. both bonds will decrease in value but bond B will decrease more than bond A - A coupon bond that pays interest annually has a par value of $1,000, matures in 4 years, and has a yield to maturity of 11%. If the coupon rate is 9%, the value of the bond today will be A. $856.04 B. $891.86 C. $937.95 D. $1,000

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