Duration is equal to maturity when at least some of the cash flows are received upon maturity of the asset.

Question

Quizplus · Accepted Answer

Duration measures the sensitivity of a bond's price to changes in interest rates and typically is less than the maturity for bonds that pay periodic interest because it accounts for the present value of all cash flows, including both interest payments and the repayment of principal, received before maturity.

Duration Is Equal to Maturity When at Least Some of the Cash