We have two fixed income bonds. Bond A has a duration of five years and Bond B has a duration of $7$ years. The Federal Reserve has increased rates by $400$ basis points. Which option is true?

The value of bond A will change more than the value of bond B$.$

The value of bond A will change less than the value of bond B$.$

The values of bonds will change by approximately the same amount.

Nothing definite can be said about the changes.