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Which of the following is TRUE?
A
If a consol (perpetual) bond with a 100facevaluepaysa3.0100 face value pays a 3.0% coupon in perpetuity and the yield is 5.0%, the consol's price is 100facevaluepaysa3.060 and its modified duration is 20 years.
B
Since a BARBELLE bond portfolio has greater convexity than a BULLET, the barbell always
