Changes in the coupon rate and changes in duration

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Reference no: EM132005650

1. Suppose that you want to invest in bonds that have a relatively low volatility. Which of the following characteristics should you look for?

Bonds with a low yield to maturity.

Long duration bonds.

Short duration bonds

None of the above

2. There is a positive relationship between changes in the coupon rate and changes in duration.

True

False

Reference no: EM132005650

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