Question: Question 8 1 pts Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pays interest of
Question 8 1 pts 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 five (5) years, while bond B will mature in 10 years. If the yields to maturity on the two bonds change from 12 percent to 14 percent, O both bonds will increase in value but bond A will increase more than bond B. O both bonds will increase in value but bond B will increase more than bond A. O the values of both bonds will change by the same amount because they both are currently selling at $1,000 O both bonds will decrease in value but bond B will decrease more than bond A. O both bonds will decrease in value but bond A will decrease more than bond B
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