In class we discussed the importance of measuring bond price volatility. Answer the following questions concerning duration and convexity. The following information is needed for questions $1$ and $2.$

Bond

Coupon Percentage

Maturity $($in years$)$

Yield

A

$5\%$

$30$

$5\%$

B

$4\%$

$30$

$5\%$

C

$5\%$

$15$

$6\%$

D

$4\%$

$15$

$6\%$

Flag question: Question $1$

Question $13$ pts

Which bond has the highest duration? Why?

Group of answer choices

Bond C$,$ it has a shorter maturity, higher coupon, and higher yield.

Bond A$,$ it has a longer maturity, higher coupon, and a lower yield.

Bond D$,$ it has a shorter maturity, lower coupon, and higher yield.

Bond B$,$ it has a longer maturity, lower coupon, and lower yield

Flag question: Question $2$

Question $23$ pts

Which bond has the lowest duration? Why?

Group of answer choices

Bond A$,$ it has a longer maturity, higher coupon, and a lower yield.

Bond D$,$ it has a shorter maturity, lower coupon, and higher yield.

Bond B$,$ it has a longer maturity, lower coupon, and lower yield

Bond C$,$ it has a shorter maturity, higher coupon, and higher yield.