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Consider two bonda. A and B. Both bands presently are seling at their par value of $1,000. Each pays interest of $120 annualiy. Bond A
Consider two bonda. A and B. Both bands presently are seling at their par value of $1,000. Each pays interest of $120 annualiy. Bond A wii mature in five years. while bond B will mature in six years. If the ylelds to maturity on the two bonds change from 12\% to 70\%. both bonds will merease in value but bond A will ineresse more than bond if boet bonds will inerease in vaive, but bond B will insrease more than bond A. both bonals wil decrease in vahie, but bond A will decrease more than bond A both bonds will decrease in value, but bond B will decrease mare than bond A. None of the optons are correct
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