\begin{tabular}{l|l} \hline Question 5 & WhentheinvestorsinvestmenthorizonislessthantheMacaulaydurationofthebond,theinvestor:A.isindifferentbetweenhigherandlowerinterestrates.B.prefersalowerinterestrate.C.prefersahigherinterestrate. \\ \hline Your choice & \\ \hline Explanation & \\ \hline Question 6 & Theinterestrateriskofafixed-ratebondwithanembeddedputoptionisbestmeasuredby:A.KeyratedurationB.EffectivedurationC.Modifiedduration \\ \hline Your choice & \\ \hline & \\ \hline \end{tabular}