QUESTION 6 Which of the following statements is correct about duration? O a. The duration of a bond increases as the coupon rate increases. b. Modified duration measures the change in the value of a bond equally as well when interest rates increase as when interest rates decrease. c. Duration can exceed the maturity for a bond, if the bond has a call feature. O d. Effective duration can accommodate bonds with embedded options. QUESTION 7 Which of the following bonds are most likely to be called? a. Zero-coupon bonds. b. Coupon bonds selling at a discount. O c. Coupon bonds selling at a premium. O d. Floating rate bonds