Question: 1) Consider 1-factor parallel yield shift model with a flat structure of forward rates and consider two bonds with the same maturity time T but

1)Consider 1-factor parallel yield shift model with a flat structure of forward rates and consider two bonds with the same maturity time T but with different coupon rates. Which bond has a lower duration?

A) The bond with lower coupon rate has lower Duration

B)The bond with higher coupon rate has lower Duration

C)The Durations of these two bonds are the same

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