Question: Which statements are true about convexity? I - It creates more error when using duration to predict price changes in bonds. II - It is

Which statements are true about convexity?

I - It creates more error when using duration to predict price changes in bonds.

II - It is desirable to the investor.

III - It is highest in long maturity bonds.

IV - It is highly correlated with coupon rate of the bond.

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