Question: Are these Statements False: Why? 1. For a given coupon rate, the sensitivity of bond prices to changes in interest rates increases at an increasing

Are these Statements False: Why?

1. For a given coupon rate, the sensitivity of bond prices to changes in interest rates increases at an increasing rate as maturity increases.

2. For a given absolute change in interest rates from the same base level, the proportionate increase in bond prices when rates fall is larger than the proportionate decrease in bond prices when rates rise.

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