Your friend has learnt that when interest rates fall, medium term rates are more volatile, and thus will likely fall more than either short term or long term rates. Consequently, an investment in long term bonds will profit more than an investment in medium term bonds (on a percentage basis). What is the correct analysis of your friend's reasoning? (a) My friends reasoning and conclusions are probably correct. (b) My friend's conclusion is probably wrong. (c) My friend's conclusion is probably correct, but their reasoning is wrong