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You have just purchased a government bond for $1,100 that promises to pay $100 per annum over the next five years. The market price of

You have just purchased a government bond for $1,100 that promises to pay $100 per annum over the next five years. The market price of the bond has just increased to $1,150. A likely reason for this is:

the yield to maturity (YTM) has increased.

the yield to maturity (YTM) has decreased.

the face value of the bond has been decreased.

the bond is perceived by the market to be more risky now than before.

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