Ceteris paribus, the duration of a bond is positively correlated with the bond's

Question

Quizplus · Accepted Answer

The term "duration" refers to the sensitivity of a bond's price to changes in interest rates. The longer the time to maturity, the more sensitive the bond's price will be to changes in interest rates. Therefore, duration is positively correlated with time to maturity. The coupon rate and yield to maturity may also affect a bond's price, but they are not directly related to duration.

Ceteris Paribus, the Duration of a Bond Is Positively Correlated