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 $ Each pays interest of $ annually. Bond A will mature in years, while bond B will mature in years. If the yields to maturity on the two bonds change from t to
A both bonds will increase in value, but bond A will increase more than bond
B both bonds will increase in value, but bond will increase more than bond
C both bonds will decrease in value, but bond A will decrease more than bond
D both bonds will decrease in value, but bond will decrease more than bond
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