Question: Please answer the question. This is all that has been provided by the professor. 7. If bond A and B have the same duration, but

Please answer the question. This is all that has been provided by the professor.

Please answer the question. This is all that has been provided by

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. (e) the price of bond A will change in the some amount as B for a given change in the level of interest rates because they have the same duration

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