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Bond A pays annual coupons of 5 % , matures in 3 years, and has a par value of $ 1 , 0 0 0
Bond A pays annual coupons of matures in years, and has a par value of $ Bond B pays annual coupons of matures in years, and has a par value of $ The YTM for both bonds is
What will happen to their price as they age by year assume that the Yrim stays the same :
a Bond A and will increase in value.
b Bond A will increase in value, and bond will decrease in value.
c Bond A and will decrease in value.
d Bond A will decrease in value, and bond will increase in value.
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