The duration of a bond:

a) Is always equal to its time to maturity.

b) Takes into account the present values of the bond's cash flows.

c) Is not affected by changes in interest rates.

d) Is the same for all bonds.

A bond with a higher yield to maturity will typically have:

a) A longer duration and higher convexity.

b) A longer duration and lower convexity.

c) A shorter duration and higher convexity.

d) A shorter duration and lower convexity.