Impact of Term Structure on Bond Valuation

Consider a scenario where the yield curve is positively sloped, indicating that long-term interest rates are higher than short-term rates. You are analyzing two bonds with similar credit risk, one with a 5-year maturity and the other with a 10-year maturity. Both bonds have a coupon rate of 6% but are selling at different prices in the market. As an investor, you are particularly focused on understanding how the term structure of interest rates can affect the pricing of these bonds.

Based on this information, select the statement that correctly describes the relationship between the term structure of interest rates and the valuation of the two bonds under consideration.