Bond Price and Yield Movement

An investor purchases a 10-year corporate bond with a 5% coupon rate at par value. One year later, market interest rates increase to 6%. Which of the following statements is correct regarding the bond’s price and yield?

1. The bond’s price will decrease, and its yield will increase.
2. The bond’s price will increase, and its yield will decrease.
3. The bond’s price will remain the same since its coupon rate is fixed.
4. The bond’s price will decrease, but its yield will remain unchanged.