A bond has a face value of $1,000, has 5 years until maturity, and an annual coupon rate of 6%. It yields 4% currently. By how much will the price change over the next year if the yield remains constant?

A. decline by $16.44

B. decline by $12.59

C. decline by $15.67

D. rise by $15.67

If an investor purchases a 2%, 5-year TIPS at its par value of $1,000 and the CPI increases 5% over each of the next 5 years, what will be the real value of the principal at maturity?