
Ultimate access to all questions.
Which of the following is TRUE?
A
If a consol (perpetual) bond with a $100 face value pays a 3.0% coupon in perpetuity and the yield is 5.0%, the consol's price is $60 and its modified duration is 20 years.
B
Since a BARBELLE bond portfolio has greater convexity than a BULLET, the barbell always