Relative to actual bonds-bond futures offer the advantage

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1. Relative to actual bonds, bond futures offer the advantage of:

A. Higher transaction cost

B. Less interest rate risk

C. More liquidity

D. Less duration risk

2. For bonds with embedded options that are more or less sensitive to positive and negative changes in interest rates, which of the following measures is preferred:

A. One sided duration

B. Effective duration

C. Loss given default

D. Negative convexity

Reference no: EM131504306

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