Question: Consider two bonds, A and B , that have the same face value of $ 1 0 0 , the same coupon rate of 0

Consider two bonds, A and B, that have the same face value of $100, the same coupon rate of 0%, and the same yield (to maturity) of 5%. If bond A has one year remaining to maturity and if Bond B has two years remaining to maturity, what is true about the price of bond A compared to the price of bond B?
Question 22 options:
1)
The price of bond A is greater than the price of bond B.
2)
The price of bond A is less than the price of bond B.
3)
Both bonds will have the same price.
4)
There is not enough information provided to answer this question.
5)
None of the answers listed above is correct.

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