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Consider a zero-coupon bond and a coupon bond (with a non-zero coupon rate) with the same maturity, (One or more than one options may be
Consider a zero-coupon bond and a coupon bond (with a non-zero coupon rate) with the same maturity,
(One or more than one options may be correct)
Select one or more:
a. the modified duration of the zero-coupon bond is higher than the modified duration of the coupon bond.
b. the Dollar duration of the zero-coupon bond is higher than the Dollar duration of the coupon bond.
c. the Macaulay duration of the zero-coupon bond is higher than the Macaulay duration of the coupon bond.
d. All of the statements are correct.
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