In general the lower the yield to maturity of a bond, the
A) lower the duration of a bond.
B) higher the duration of a bond.
C) lower the default risk.
D) lower the price of the bond.

Question

Quizplus · Accepted Answer

The duration of a bond is a measure of its price sensitivity to changes in interest rates. Bonds with lower yields to maturity have higher durations, meaning their prices will be more sensitive to changes in interest rates. Therefore, choice B is the correct answer.

In General the Lower the Yield to Maturity of a Bond