An investor holds two bonds, one with 5 years until maturity and the other with 20 years until maturity. Which of the following is more likely if interest rates suddenly increase by 2%?

Multiple Choice

The 20-year bond will decrease more in price.

The 5-year bond will decrease more in price.

Both bonds will decrease in price by the same proportion.

Neither bond will decrease in price, but their yields will increase.