Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pay 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% what happens to the value of both bonds?

Group of answer choices

1) both bonds will increase in value but bond A will increase more than bond B

2) both bonds will increase in value but bond B will increase more than bond A

3)both bonds will decrease in value but bond A will decrease more than bond B

4) both bonds will decrease in value but bond B will decrease more than bond A