Assume that a noncallable $10-$year T$-$bond has a $12\%$ annual coupon, while a $15-$year noncallable T$-$bond has a $9\%$ annual coupon. Assume also that the yield curve is flat, and all Treasury securities have a $11\%$ yield to maturity. Which of the following statements is CORRECT?

Group of answer choices

The $10-$year bond would sell at a premium, while the $15-$year bond would sell at par.

If the yield to maturity on both bonds remains at $11\%$ over the next year, the price of the $10-$year bond would increase, but the price of the $15-$year bond would fall.

If interest rates increase, the prices of both bonds would decline, but the $10-$year bond would have a larger percentage decline in price.

If interest rates increase, the prices of both bonds would decline, but the $10-$year bond would have a smaller percentage decline in price.

The $10-$year bond would sell at a discount, while the $15-$year bond would sell at a premium.