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1. Based on the graph, which of the following statements is true? The 10-year bond has more interest rate risk. Both bonds have equal interest

1. Based on the graph, which of the following statements is true?

The 10-year bond has more interest rate risk.

Both bonds have equal interest rate risk.

Neither bond has any interest rate risk.

The 1-year bond has more interest rate risk.

2. Which type of bonds offer a higher yield?

Noncallable bonds

Callable bonds

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