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Catnip Evergreen holds two bonds having the same coupon payment, one with 5 years until maturity and the other with 20 years until maturity. Which

Catnip Evergreen holds two bonds having the same coupon payment, one with 5 years until maturity and the other with 20 years until maturity. Which of the following is morel likely if interest rates suddenly decrease by 2%?

1. The 5 year bond will decrease more in price.

2. The 5 year bond will increase more in price.

3. The 20 year bond will decrease more in price.

4. The 20 year bond will increase more in price.

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