While Stock Returns Are Commonly Modeled as Lognormal, Bond Returns

Multiple Choice

While stock returns are commonly modeled as lognormal, bond returns are less ideally modeled as lognormal because

A) Bond return volatility may not always be increasing in maturity.
B) Bond yields may be negative when bond returns are lognormal.
C) Both (a) and (b) .
D) Neither (a) nor (b) .