Schweser states:
Due to bias in the computation of CFs if yields are lower than 6%, there is a bias to short-duration (high coupon, low maturity) securities. If yields are greater than 6%, there is a bias to long-duration securities.
Can anyone help me conceptualize this better? What is the bias in computation of CF? Why are we biased towards short duration securities when yields are low, and long duration when yields are high?
TIA!