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revAdmin (Created page with "'''Solution: D''' (II) the entire value of the treasury strip is in the principal repayment in the distant future; it has the highest duration and is most sensitive to a change in the interest rate. (III) despite having the same maturity as (b), (c) has 5.5% coupon payments that dampen its sensitivity to interest rate changes. (IV) higher coupon payment → lower duration (I) T-bills are only for 1 to 6 months; they have the smallest duration. '''References''' {{ci...")Dec 5'23 at 0:31+739