Answer the following.

a.

b.

Holding the market yield and the coupon rate of a bond constant, as the time to maturity increases (Select from the drop-down menu.) O A. The discounted face value of the bond represents a larger percentage of the bond's total value than the total present value of the interest payments O B. The default risk on corporate bonds decreases. O C. The sum of the present value of the coupon payments represents a larger share of the total bond value than the present value of the principal O D. The discount factor used to calculate the present value of the principal increases O E. The value of the bond will fluctuate less for any change in market yields