Sarafina has bonds in her portfolio. She wants to know about her position in the bond market. Specifically, when dealing with the bond market, will she fare better when the yield to maturity increases or when it decreases? As such, her portfolio manager would tell her that bondholders fare better when the yield to maturity: O A decreases, since this represents an increase in the coupon payment and an increase in potential capital gains. O B. decreases, since this represents an increase in the price of the bond and a decrease in potential capital losses. OC increases, since this represents a decrease in the bond maturity and a decrease in potential capital losses OD. increases, since this represents a decrease in the price of the bond and an increase in potential capital gains Bob wins a lottery and receives $20,000 per year until he retires. As a result, he decides to work 35 hours per week instead of 40 hours per week. The annual income effect on a 50-week year is: O A $20,000 OB -0.0125 OC. 0.0125 OD $400