1. All other things equal, a bond's duration is _________.

a. higher when the coupon rate is higher

b. lower when the coupon rate is higher

c. the same when the coupon rate is higher

d. indeterminable when the coupon rate is high

2. A bond's price volatility _________ at _________ rate as maturity increases.

a. increases; an increasing

b. increases; a decreasing

c. decreases; an increasing

d. decreases; a decreasing