Two bonds offer a five percent coupon rate, paid annually, and sell at par ($1,000). One bond matures in two years and the other matures in ten years. What are the YTMs on each bond? If the YTM changes to four percent, what happens to the price of each bond? What happens if the YTM changes to six percent?

Select one: a. $1070 b. $1,081.11 c. $1060 d. $1030 e. $1000