Bond A is a 30-year bond and Bond B is a 5-year bond. Both bonds pay a semi-annual coupon of 5.5% and are currently priced at par. Due to economic uncertainty, the yield to maturity increases by 2%. How will each of these bonds' respective prices change?

Question 26 options:

a)	Both bond prices will decrease, but Bond B will decrease by a greater amount than Bond A.
b)	Bond A price will increase, and Bond B price will decrease.
c)	None of these answers
d)	Bond B price will increase, and Bond A price will decrease.
e)	Both bond prices will decrease, but Bond A will decrease by a greater amount than Bond B.

Question 27 (1 point)

The process of evaluating whether or not to build an open a new production factory is referred to as:

Question 27 options:

a)	None of these answers.
b)	Working capital management.
c)	Capital structure.
d)	Cash management.
e)	Capital budgeting.