Two bonds of equal risk are for sale on the secondary bond market. The

Two bonds of equal risk are for sale on the secondary bond market. The two bonds have the same face value, and both mature in 10 years. Bond A pays $10 per year and bond B pay $15 per year. Which bond will sell for a higher price?

A) Bond A
B) Bond B
C) They will sell for the same price.
D) The relative prices will depend on the expected interest rate over the next 10 years.

ANSWER

B