Milner's Tools has a 9-year, 7 percent annualcoupon bondoutstanding with a $1,000par value. Carter's Tools has a 10-year, 6 percentannualcoupon bond...

Milner's Tools has a 9-year, 7 percent annualcoupon bondoutstanding with a $1,000par value. Carter's Tools has a 10-year, 6 percentannualcoupon bond with a $1,000 par value. Both bonds currently have a yield to maturity of 6.5 percent. Which of the followingstatements is correct if themarket yield increases to 6.75percent?