Last Year, Forest Products Issued Both 5-Year and 10-Year Bonds

Multiple Choice

Last year, Forest Products issued both 5-year and 10-year bonds at par.The bonds each have a coupon rate of 5.5 percent, paid semiannually, and a face value of $1,000.Assume the yield to maturity on each of these bonds is now 7.4 percent.What is the percentage change in the price of the 5-year bond since it was issued? The 10-year bond?

A) -3.39; -6.08
B) -6.08; -6.33
C) -6.48; -12.33
D) -6.48; -10.87
E) -3.39; -5.77