Question: Question 6 (15 points) Let P(x) = 2 1 be a generic bond pricing function as discussed in the course. Dollar duration is: A measure

Question 6 (15 points) Let P(x) = 2 1 be a generic bond pricing function as discussed in the course. Dollar duration is: A measure interest rate risk as captured by the slope of the yield curve How long it takes on average to get the bond payments back. The slope of the bond pricing function. The second order derivative of the bond pricing fuction at certain level of the yield y

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