Fixed Income: Bond Duration Which of the following is TRUE? O A bond with a duration of 5 will RISE by 5% when interest rates RISE by 1% O A bond with a duration of 5 will RISE by 5% when interest rates RISE by 296 If interest rates decline equally for bonds of all durations, to earn the highest retum one would want to be invested in the LONGEST duration bond Longer-term bonds are LESS volatile to changes in interest rates than short-term bonds