Regardless of its maturity date, it is very unusual for a coupon-paying bond to have a duration greater than:
A) 2 years.
B) 4 years.
C) 7 years.
D) 10 years.

Question

Quizplus · Accepted Answer

The duration of a coupon-paying bond is typically less than its maturity, and it is unusual for it to exceed 10 years because the bond's cash flows are spread over time, reducing the sensitivity to interest rate changes.

Regardless of Its Maturity Date, It Is Very Unusual for a Coupon-Paying