Which of the following statements pertaining to Mortality-rate derivation of credit risk is false?

Select one:

a. Mortality rate estimates are sensitive to the number of issues in each investment grade

b. Mortality rate estimates are sensitive to the sample period

c. Mortality rate approach is backward looking

d. Mortality rate approach is forward looking

e. Mortality rates are estimated from actual data on bond and loan defaults

Which one of the following statements is true?

Select one:

a. Duration decreases with the maturity of a fixed income security, but at a decreasing rate.

b. Duration decreases with the maturity of a fixed income security, but at an increasing rate.

c. Duration increases as the yield on a security increases.

d. Duration decreases as the coupon payment increases.

e. None of the listed options is correct.