Holding other factors constant, the interest-rate risk of a coupon bond is higher when the bond's
A) term to maturity is lower.
B) coupon rate is higher.
C) yield to maturity is lower.
D) current yield is higher.
E) None of the options are correct.
Correct Answer:
Verified
Q14: The "modified duration" used by practitioners is
Q15: The interest-rate risk of a bond is
A)
Q16: The duration of a par-value bond with
Q17: Ceteris paribus, the duration of a bond
Q18: Holding other factors constant, the interest-rate risk
Q20: Ceteris paribus, the duration of a bond
Q21: Identify the bond that has the longest
Q22: Indexing of bond portfolios is difficult because
A)
Q23: Duration
A) assesses the time element of bonds
Q24: Cash flow matching on a multiperiod basis
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