Please select the best response to complete the following sentence.

If a pass-through security is trading at a discount, and market interest rates begin to rise,

Group of answer choices

prepayments will drop and price will drop more sharply than for a normal coupon bond.

prepayments will rise and price will drop less sharply than for a normal coupon bond.

prepayments will rise and price will drop more sharply than for a normal coupon bond.

prepayments will drop and price will drop less sharply than for a normal coupon bond.