Which of the following two statements are correct regarding convexity? A) Performance of a bond increases with its convexity. B) Callable bonds exhibit negative convexity as interest rates increase O Only A is correct O Only B is correct O Both A and B are correct O Neither A or B are correct All of the following are differences in how bond trade versus equities except: Bonds trade in a more opaqine market (less pricing data readily available) Equities generally trade at a wider bid-ask spread differential O Equities tend to more often be traded on electronic exchanges O Minimum trading sizes for equities are smaller Which of the following durations is more suitable for bonds with an embedded option, when the yield curve does not change in a parallel fashion? O Effective duration O Modified duration O Key rate duration O Macaulay duration Which of the following two statements are correct regarding duration? A) For deep discount bonds with long time to maturity, duration is not directly related to time to maturity. B) The fraction of the period that has gone by (t/T) is inversely related to duration O Only A is correct O Only B is correct O Both A and B are correct O Neither A or B are correct