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A fixed-income trader expects a bull flattening of the interest rate term structure, and wants to pursue a strategy that would profit from this movement in rates. The trader decides to achieve this goal by taking positions in 2-year and 10-year bonds. Will the 2-year rate increase or decrease in the trader's expected scenario, and which of the following sets of trades would be the most likely to generate a profit if the trader's expectations materialize?
A
2-year rate Decrease; Short the 2-year and buy the 10-year
B
2-year rate Decrease; Buy the 2-year and short the 10-year
C
2-year rate Increase; Short the 2-year and buy the 10-year
D
2-year rate Increase; Buy the 2-year and short the 10-year