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Which of the following statements is/are true? Group of answer choices Statement 2: Investors do not find convexity valuable because it results in poorer prediction
Which of the following statements is/are true? Group of answer choices Statement 2: Investors do not find convexity valuable because it results in poorer prediction of a bonds price change as a result of an interest rate change. Both statements are true. Statement 1: Investors tend to find convexity valuable because when interest rates decrease, the price of a more convex bond increases more. Neither statement is true.
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