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# The formula for duration (assuming a parallel shift in interest rates) and for spread duration (assuming a parallel shift in credit spreads) produce...

**The formula for duration (assuming a parallel shift in interest rates) and for spread duration (assuming a parallel shift in credit spreads) produce the same result. **

**(a) Is empirical duration typically greater than or less than the analytical duration computed through the formula for spread duration? Why?**

**(b) Is the difference between empirical duration and the formula for analytical duration generally greater for investment grade or non-investment grade bonds? Why?**