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Consider two bonds, A and B. Both bonds presently are selling at their oar value of $1,000. Each pays interest of $120 annually. Bond A

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Consider two bonds, A and B. Both bonds presently are selling at their oar value of $1,000. Each pays interest of $120 annually. Bond A will mature in 5 years while bond B will mature in 6 years. If the yields to maturity on the two onds change from 12% to 10%, A) both bonds will increase in value, but bond A will increase more than bond B B) both bonds will increase in value, but bond B will increase more than bond A. C) both bonds will decrease in value, but bond A will decrease more than bond B D) both bonds will decrease in value, but bond B will decrease more than bond A E) none of the above

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