An analyst gathered the following informat
问题:
An analyst gathered the following information about two option-free bonds that each have a par value of $1000 : Bond 1Bond 2 Time to maturity 5years10years Annual coupon rate5.0% 7.0% Discount rate today6.0% 6.5% If the discount rate does not change for rather bond, one year from today, which of the following most likely describes the change in price for each bond()
A. Both bond 1 and 2 will decrease.
B. Both bond 1 and 2 will increase.
C. Bond 1 will decrease and bond 2 will decrease.