Question 3 10 pts Under a flat term structure, Bonds A and B both have Macaulay duration of 5 years and face value of $5000. Bond B is a zero-coupon bond, while Bond A pays annual coupons and is priced at par. Using first order modified approximation, determine which of the following statements is correct if the yield curve experiences a parallel shift up by 0.02% Both bond prices will decrease, and Bond A will have a larger price decrease O Both bond prices will increase, and Bond A will have a larger price increase Cannot be determined based on the given information Both bond prices will decrease, and Bond B will have a larger price decrease Both bond prices will increase, and Bond B will have a larger price increase Previous Next No new data to save. Last checked at 10