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Consider the following statements: I. Ceteris paribus , Convexity increases with Bond maturity II. Ceteris paribus , Coupon bonds of the same maturity have less
Consider the following statements:
I. Ceteris paribus, Convexity increases with Bond maturity
II. Ceteris paribus, Coupon bonds of the same maturity have less convexity than do deep-discount bond
III. Ceteris paribus, same duration deep-discount bonds are more convex than coupon bonds
Which of the above statements is true?
a.
Statement I and Statement II
b.
Statement III
c.
Statement I, Statement II, and Statement III
d.
Statement I
e.
Statement II
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