Duration and maturity are usually_____related, while duration and yield are usually _______ related.
A)positively, positively
B)positively, negatively
C)negatively, positively
D)negatively, negatively
E)none of the above

Question

Quizplus · Accepted Answer

Duration and maturity are usually positively related because the longer the maturity of a bond, the longer its duration, meaning it is more sensitive to changes in interest rates. Duration and yield are usually negatively related because as yield increases, the present value of future cash flows decreases, leading to a shorter duration.

Duration and Maturity Are Usually_____related, While Duration and Yield Are