The duration of a bond is a function of the bond's

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Quizplus · Accepted Answer

The duration of a bond is influenced by its coupon rate, yield to maturity, and time to maturity. A higher coupon rate generally leads to a shorter duration, indicating the bond is less sensitive to interest rate changes. Yield to maturity affects how the present values of the bond's cash flows are calculated, impacting its duration. Time to maturity is directly related to duration; longer maturities usually mean longer durations, assuming other factors are constant. Therefore, all the options correctly describe factors that function in determining a bond's duration.

The Duration of a Bond Is a Function of the Bond's