1. Which one of the following statements is true regarding the duration of a zero-

coupon bond?

1. it will be greater than the duration of a coupon bond with the same maturity.
2. it is impossible to determine.

C) it will be less than the duration a coupon bond with the same maturity.

D. It will be equal to the duration of a coupon bond with the same maturity.

2. Which one of the following is a disadvantage of convertible bonds?
   1. Their exposure to upside movements in the stock price.
   2. Convertible yields are less than straight bond yields of similar risk and maturity.

C) A lack of downside protection for the investor.

D) Convertibles are not callable and must be held to maturity