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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 convexity than
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
WHY the third statment is False
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