Volatile High Interest Rates Have Directly Caused More Emphasis on Duration

Multiple Choice

Volatile high interest rates have directly caused more emphasis on duration analysis because:

A) investors have responded to the new environment by switching from short-term to longer-term securities.
B) prices of longer-term bonds are more sensitive to shifts in interest rates than shorter-term bonds.
C) duration analysis measures the degree of bond price sensitivity.
D) All of the above