Question: Two bonds have the same face value of $ 1 , 0 0 0 and a coupon rate of 5 % , but Bond A

Two bonds have the same face value of $1,000 and a coupon rate of 5%, but Bond A matures in 2 years while Bond B matures in 10 years. If interest rates rise from 4% to 6%, which bonds price will decrease more? Explain why.

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