Bond duration, price volatility and yield volatility
Bond A has a price volatility of 21% and yield volatility of 11% and Bond B has a price volatility of 1.4% and yield volatility of 12%. Given this information, what can one conclude about the durations of these bonds?
1) Bond A and Bond B have similar durations.
2) Bond A has a longer duration than Bond B.
3)Bond A has a shorter duration than Bond B.
4)There is no relationship between their durations
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