A Treasury bond dealer has just purchased bonds from a customer. She wants to hedge her risk until she can sell them. The only forward contract available to her is a 3-month forward for a specific Treasury note. Her hedge ratio will be greater: Choose two

1. the longer the maturity of the bond compared to that of the note
2. the shorter the duration of the bond compared to that of the note
3. the more volatile the yield of the bond compared to that of the note
4. the shorter the maturity of the bond compared to that of the note