7 Two bonds are selling at par value, and each has 17 years to maturity. The first bond has a coupon rate of 6%, and the second bond has a coupon rate of 13%. Which of the following is true about the durations of these bonds? a. The duration of the higher coupon bond will be higher. b. The duration of the lower coupon bond will be higher. c. The duration of the higher coupon bond will equal the duration of the lower coupon bond. d. The bond's durations cannot be determined without knowing the prices of the bonds. 8 Immunization is not a strictly passive strategy because: a. it requires choosing an asset portfolio that matches an index b. there is likely to be a gap between the values of assets and liabilities in most portfolios. c. it requires frequent rebalancing as maturities and interest rates change. d. durations of assets and liabilities fall at the same rate