Question 17 2 pts Jo Select the answer/answers that is/are correct. (this question worth 2 points) C of bond A's duration is 4 and bond Bis a 3-year, zero coupon bond, then bond B is more volatile to interest rate changes compared to bond A Duration of a zero coupon bond equals to the YTM of the bond. The price risk and the reinvestment risk offset each other if the duration equals to the maturity of the bond Investors face price risk and roinvestment risk when market rates change O Duration shows the weighted average time of receiving the par value of the bond D Question 18 2 pts Select the answer/answers that is/are correct. (this question worth 2 points) If the YIM is higher than the reinvestment rate then the bond will have total/realized return that is lower than the YTM If you want to avoid both the reinvestment risk and the price risk you can purchase 3 3-year 3X coupon bond and keep it until maturity. If we know only the maturity of a zero coupon bond, we can calculate the bond's duration Everything else equal. Bond A will have shorter duration than bond Bif bond A has higher coupon rate than bond B If we know only the duration and the face value of the bond we can calculate the future value of the bond's coupons