Question: True & False 1. Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pays interest of

True & False 1. Consider two bonds, A and B. Both

True & False 1. 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 5 years, while bond B will mature in 6 years. If the yields to maturity on the two bonds change from 12% to 14%, then both bonds will decrease in value but bond B will decrease more than bond A A) True OB) False

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