All other things equal (YTM = 10%), which of the following has the longest duration?
A) a 30-year bond with a 10% coupon
B) a 20-year bond with a 9% coupon
C) a 20-year bond with a 7% coupon
D) a 10-year zero-coupon bond

Question

Quizplus · Accepted Answer

Duration is a measure of a bond's sensitivity to changes in interest rates. Longer-term bonds have a greater duration than shorter-term bonds. Among the given choices, the longest-term bond is the 30-year bond, which implies that it will have the longest duration.

All Other Things Equal (YTM = 10%), Which of the Following