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Holding everything else constant, if the 2-year spot rate (y2) increases, the price of the 4-year coupon bond will _____ and the price of the

Holding everything else constant, if the 2-year spot rate (y2) increases, the price of the 4-year coupon bond will _____ and the price of the 1-year coupon bond will____.

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decrease; remain constant

remain constant; decrease

decrease; decrease

increase; increase

increase; remain constant

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