单选题 An analyst gathered the following information about two option-free bonds that each have a par value of $1000 : Bond 1 Bond 2 Time to maturity 5years 10years Annual coupon rate 5.0% 7.0% Discount rate today 6.0% 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.
【正确答案】 C
【答案解析】Bond 1 is currently selling at a discount to par and bond 2 is selling at a premium to par. If the discount rate does not change for either bond, bond 1 will increase in piece because of the passage of time, but bond 2 will decrease, in price.