QUESTION 18 Consider two option-free, 5% annual-pay bonds from the same issuer and with the same seniority. One of the bonds has a modified duration of 3.5 and approximate convexity of 15. The other has a modified duration of 8.5 and approximate convexity of 75. Can the lower- duration bond have more price volatility than the higher-duration bond? A) No, because it also exhibits lower convexity B) Yes, because shifts in the yield curve may be non-parallel C) No, because its price will respond relatively less in response to changes in yield OOO