Which of the following statements best describes empirical duration? A. A common way to calculate a bonds
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Which of the following statements best describes empirical duration?
A. A common way to calculate a bond’s empirical duration is to run a regression of its price returns on changes in a benchmark interest rate.
B. A bond’s empirical duration tends to be larger than its effective duration.
C. The price sensitivity of high-yield bonds to interest rate changes is typically higher than that of investment-grade bonds.
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