Question: 1 5 . Consider the following two Treasury securities: Bond Price Modified duration ( years ) A $ 1 0 0 6 B $ 8

15. Consider the following two Treasury securities:
Bond Price Modified duration (years)
A $1006
B $807
Which of the following statement is incorrect?
A. for a 25-basis-point change in interest rates, bond A has a greater estimated dollar price volatility compared to bond B
B. for a 25-basis-point change in interest rates, from an investors point of view, every dollar invested in bond B has greater volatility
C. The price volatility of bond B is greater than A.
D. for a 25-basis-point change, the percentage change in price of B is 1.4%

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