Interest Rate Volatility and Bond Prices

In the context of fixed income investments, understanding the term structure of interest rates is crucial for informed decision-making. Interest rate volatility plays a significant role in how bond prices fluctuate based on changes in interest rates. Generally, lower interest rate volatility implies that the bond's price will be less sensitive to interest rate changes, while higher volatility indicates greater sensitivity.

Consider the following statements regarding interest rate volatility:

1. Increased interest rate volatility typically leads to wider bond yield spreads.

2. Bonds with longer durations are more impacted by interest rate volatility than those with shorter durations.

Which of the above statements is correct?