Consider Two Bonds, a and B

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 years, while bond B will mature in six years.If the yields to maturity on the two bonds change from 12% to 10%,

A) both bonds will increase in value, but bond A will increase more than bond B.
B) both bonds will increase in value, but bond B will increase more than bond A.
C) both bonds will decrease in value, but bond A will decrease more than bond B.
D) both bonds will decrease in value, but bond B will decrease more than bond A.
E) None of the options

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