Question 3 Which of the following statements are false: A) A nominal bonds Macaulay Duration is lower than its maturity B) A zero-coupon bonds Macaulay Duration lower than its maturity C) Convexity represents the changes in bond price relative to changes in duration D) A bond with a coupon rate identical to its yield to maturity will have a price equal to par value E) Bond prices are driven by supply and demand Question 4 Which of the following statements are false: A) The tangency portfolio is the point on the efficient frontier that is tangent to the risk-free rate B) None of the above are false C) You cannot determine the tangency portfolio if your portfolio only has a single asset D) You cannot calculate the tangency portfolio without a risk-free rate E) The tangency portfolio is optimal as it provides the highest sharpe ratio