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Hello please assignment due in 1h30 help Consider 1-factor parallel yield shift model with a flat structure of forward rates and consider two bonds with
Hello please assignment due in 1h30 help
Consider 1-factor parallel yield shift model with a flat structure of forward rates and consider two bonds with the same maturity time T but with different coupon rates. Which bond has a lower duration?
A) The bond with lower coupon rate has lower Duration
B) The bond with higher coupon rate has lower Duration
C) The Durations of these two bonds are the same
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