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Use the following information to answer Questions 6-7. Long-term Treasury bonds with face values of $100 are currently selling at yields to maturity of 8%.

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Use the following information to answer Questions 6-7. Long-term Treasury bonds with face values of $100 are currently selling at yields to maturity of 8%. You expect interest rates to fall. The rest of the market thinks that they will remain unchanged over the coming year. For each question, choose the bond that will provide the higher capital gain (e.g., the higher percentage change in price) if you are correct. 6. Bond A: A Treasury bond with coupon rate 8% and time to maturity 16 years. Bond B: A Treasury bond with coupon rate 8% and time to maturity 22 years. 7. Bond A: A Treasury bond with coupon rate of 7% and time to maturity 20 years. Bond B: A Treasury bond with coupon rate of 10% and time to maturity 20 years

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