I am not sure if my logic/answer is correct. We will have to wait for pepp’s explanation.
C. US bond is relatively discount bond with lower coupon & higher yield due to cap gain.so like discount bond Us bond has higher, uk bond has lower duration. @ lower yield volatility higher 4 uk bond.
I think the answer would be E. since I made this up. But I know the following two relationship hold High duration occurs for: low coupon bonds low yields Low duration occurs for: high coupon bonds high yields If i gave you the yield volatility (ie. the standard deviation of yield changes, then you’d be able to estimate which one is a safer bond from US or UK, but that information is not here, so you can’t decide)