To buy a long bonds as the interest rates were going to decline. It seems that the price of the bonds would be more volatile than short bonds.

• $1000 par value, 40 year zero coupon bonds offered by a local utility selling at $372.43.
• the market rate of interest of 2.5% would be declining to 2% within the next 9 months based on her read of the Federal Reserve policy statements.

If this is successful, what would you expect these bonds to be worth when interest rates drop to 2%. Please explain in details