An analyst does research about bond evaluation. Each of the option-free bonds listed below has a par value of $1000:
| Bond 1 | Bond 2 |
| Time to maturity | 12 years | 11 years |
| Annual coupon rate | 6.0% | 8.0% |
| Discount rate today | 7.5% | 7.5% |
Which of the following statements about the two bonds is most accurate If the discount rate for each of the bonds remains at 7.5 percent for ten years, the passage of time will result in an increase in value for:
A. Bond 1 only.
B. Bond 2 only.
C. both Bond 1 and Bond 2.