Question

Bond A has a duration of 5.6 while bond B has a duration of 6.0. Bond B
a. will have greater price variability, given a change in interest rates, relative to bond A.
b. will have a longer maturity than bond A.
c. will have a higher coupon rate than bond A.
d. will have less price variability, given a change in interest rates, relative to bond A.

Answer

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