1. Consider two bonds, A and B without default risk. They both have a YTM of 10%, three years until maturity time, and a face value of $1000. Bond A is a premium bond and bond B is a discount bond. Assume that YTM remains at 10% for both bonds throughout the next year. Which of the following statement is correct?

1. Bond A price will decrease over the next year and Bond B price will increase over the next year.
2. Bond As coupon rate is less than bond Bs coupon rate next year.
3. Bond A and Bond B will become par bonds at the end of the next year.
4. The holding period return of bond A over the next year is higher than the holding period return of bond B over the next year.
5. Investors will strictly prefer bond A to bond B.
6. None of the above.