Today is 15 November 2021, Sandy just purchased a Treasury bond with a coupon rate of j₂ = 3.105% p.a. and a face value of $100 that matures at par. The maturity date of this bond is 15 May 2023.

d) Which of following statement is incorrect?

a. We can use the duration of this Treasury bond to measure its price sensitivity.

b. We can use the PV formula in Excel to calculate the bond price if we are given the yield rate

c. The purchase price of this Treasury bond will decrease, if this Treasury bond is subject to tax payments

d. The duration of this Treasury bond will be higher if yield rate is higher.