All else equal,the ________ the coupon rate on a bond,the ________ the bond's duration.
A)higher;longer
B)higher;shorter
C)lower;shorter
D)greater;longer

Name: All else equal,the ________ the coupon rate on a bond,the ________ the bond's duration. A)higher;longer B)higher;shorter C)lower;shorter D)greater;longer
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Question

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A higher coupon rate results in a shorter duration because the bondholder receives more substantial cash flows earlier, reducing the bond's sensitivity to interest rate changes.

All Else Equal,the ________ the Coupon Rate on a Bond,the