What will happen to the market prices of the bonds

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Problem 1: If the number of years to redemption is increased for both the 20-year bond and the 50-year bond (giving Scylace plc longer before they have to repay them) and the interest rates and the yields to redemption are to remain the same, what will happen to the market prices of the bonds?

Select one:
a. The market prices of both bonds will go up.
b. The market price of the 20-year bond will go up but the market price of the 50-year bond will go down.
c. The market price of the 20-year bond will go down but the market price of the 50-year bond will go up.
d. The market prices of both bonds will go down.

Reference no: EM132976795

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