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The time to maturity of bond A is 20 years, where as the time to maturity of bond B is 5 years. What happens to
The time to maturity of bond A is 20 years, where as the time to maturity of bond B is 5 years. What happens to the market price of these bonds if market interest rates rise?
a. The price of bond A increases faster than the price of bond B increases.
b. The price of bond A increases at the same rate that the price of bond B decreases.
c. The price of bond A decreases faster than the price of bond B decreases.
d. The price of bond A decreases at the same rate that the price of bond B increases
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