Which one of the followings is not a characteristic of a bond's duration? It assumes that for every 1% change in interest rates, a bond's price will change approximately 1% in the opposite direction. Duration measures a convex relationship between price and yield changes in bonds. Duration measures in years, and the number years in duration implies how much interest rate risk a bond is exposed to. O A higher duration usually implies that a bond has higher interest rate risk. What are the changes in the following bond's prices if the yield to maturity changes to 9% and 11%, respectively? Time to maturity: 5 years Annual coupon rate: 10% (Annual Compounding) . Current Yield to maturity (YTM): 10 . . *You need to show your calculation in your exam worksheet! O $39; -$37 O $37; -$39 O -$37: $39 0-$39; -$37 Which one of the followings is not a characteristic of a bond's convexity? A bond with negative convexity will have a greater price increase than estimated by duration for a large interest rate decline. Convexity considers to be a better measure of interest rate risk than duration. O Convexity is a measure of the curvature in the relationship between bond prices and bond yields and how the duration of a bond changes as the interest rate changes