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Which of the following is / are TRUE? Question 8 options: The volatility of a bond ( i . e . , the modified duration
Which of the following isare TRUE?
Question options:
The volatility of a bond ie the modified duration is given by Durationtimes yield
When the investor's required rate of return ie the market yield is greater than the coupon rate of a bond, the bond will sell at a premium.
The call feature of a corporate bond is an advantage to the issuing company if interest rates increase.
All else equal, when interest rates rise, the duration of a coupon bond falls.
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