Consider two bonds, X and Y. Both bonds are selling at their face value of 1,000.Eachpaysinterestof 120 yearly. Bond X will mature in 3 years, while bond Y will mature in 5 years. If the yields to maturity on the two bonds change from 14% to 11%. Multiple-Choice A. both bonds will increase in value, but bond X will increase more than bond Y.. B. both bonds will decrease in value, but bond X will decrease more than bond Y. C. both bonds will decrease in value, but bond X will decrease more than bond Y. D, both bonds will increase in value, but bond Y will increase more than bond X.
