Why Do Garbage Class Bonds Often Have a Negative Duration

Multiple Choice

Why do garbage class bonds often have a negative duration?

A) The value of the returns in this bond class increases when interest rates increase.
B) It gives the rights to collateralization.
C) Bond values fall with interest rate increases.
D) It gives rights to reinvestment income on the cash flows in the CMO trust.
E) Significant risk premium required by the uninsured depositors.