Question: True or false? Explain. a. Longer-maturity bonds necessarily have longer durations. b. The longer a bonds duration, the lower its volatility. c. Other things equal,
True or false? Explain. a. Longer-maturity bonds necessarily have longer durations. b. The longer a bonds duration, the lower its volatility. c. Other things equal, the lower the bond coupon, the higher its volatility. d. If interest rates rise, bond durations rise also.
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