Question: Can someone help me understand which selection is the correct answer and why? 7. If bond A and B have the same duration, but bond

Can someone help me understand which selection is the correct answer and why?Can someone help me understand which selection is the correct answer and

7. If bond A and B have the same duration, but bond B has less convexity than A, then which of the following statement(s) is correct? (a) the price of bond A will fall more than B if the level of interest rates increases. (b) the price of bond A will fall less than B if the level of interest rates increases. (c) the price of bond A will rise more than B if the level of interest rates decreases. (d) the price of bond A will rise less than B if the level of interest rates decreases. 3 (e) the price of bond A will change in the same amount as B for a given change in the level of interest rates because they have the same duration

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