Question: Holding everything else constant, if the 2-year spot rate () increases, the price of the 4-year coupon bond will _____ and the price of the

Holding everything else constant, if the 2-year spot rate () increases, the price of the 4-year coupon bond will _____ and the price of the 1-year coupon bond will____.

Group of answer choices

remain constant; decrease

decrease; remain constant

increase; increase

increase; remain constant

decrease; decrease

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