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

Name: Ceteris paribus, the duration of a bond is negatively correlated with the bond's
Brand: Quizplus
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Quizplus · Accepted Answer

Duration, a measure of the sensitivity of a bond's price to changes in interest rates, is negatively correlated with both the bond's coupon rate and its yield to maturity. Higher coupon rates and higher yields to maturity both lead to lower duration, meaning the bond's price is less sensitive to interest rate changes.

Ceteris Paribus, the Duration of a Bond Is Negatively Correlated