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Which of the Following Statement/s Is/are True

Question 20

Multiple Choice

Which of the following statement/s is/are true?


A) The shorter the duration of a bond, the lower is its price volatility.
B) Other things equal, an increase in coupon payments increases duration
C) A zero-coupon bond has a zero duration
D) The duration of a coupon bond is always greater than its maturity
E) Other things equal, an increase in the yield to maturity increases duration

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