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Two bonds (bond A and B) have identical ZVO (zero volatility OAS), but bond B is more negatively convex. Bond B should have a ______
Two bonds (bond A and B) have identical ZVO (zero volatility OAS), but bond B is more negatively convex. Bond B should have a ______ OAS, because it has a ______ option cost. Fill in the blanks; select one A) Higher; higher B) Higher; lower C) Lower; higher D) Lower; lower
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