The duration of a 40-year, $1,000 bond at a market rate of 4% is _________ the duration of an identical bond at a market rate of 6%.
A) greater than
B) less than
C) equal to
D) there is not enough information to tell
Correct Answer:
Verified
Q18: The duration of a ten-year, 10%, $1,000
Q19: The duration of a 20-year zero-coupon bond
Q20: Duration times the reinvestment rate will give
Q21: When duration of a coupon paying bond
Q22: The duration of a bond is determined
Q24: Duration equals maturity if:
A)all cash flows are
Q25: The duration on an 8%, 25-year bond
Q26: One of the problems with duration is
Q27: The duration of a 20-year, $1,000 bond
Q28: One of the major criticisms of duration
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