Question $14(1$ point$)$

You are trying to price two bonds that have the same maturity and par value but different coupon rates. Both bonds mature in eight years and at maturity both bonds return the par value of $$1,000.$ Bond A has a coupon rate of $3\%$ and a yield to maturity of $3\%.$ Bond $B$ has a coupon rate of $5\%$ and a yield to maturity of $6\%.$ Which of the following is true of the prices of these bonds?

Bond A$\text{'}$s price is greater than Bond B$\text{'}$s price by approximately $$32.$

Bond A$\text{'}$s price is greater than Bond B$\text{'}$s price by approximately $$62.$

Bond B$\text{'}$s price is greater than Bond A$\text{'}$s price by approximately $$25.$

Bond B$\text{'}$s price is greater than Bond A$\text{'}$s price by approximately $$50.$

The prices of both bonds are approximately the same.