The duration is independent of the coupon rate only for which one of the following?

Question

Quizplus · Accepted Answer

Perpetuities are bonds that have no maturity date and make interest payments forever. Since there is no maturity date, the duration of perpetuities is independent of the coupon rate. For discount bonds, the duration increases as the coupon rate decreases, while for premium bonds, the duration decreases as the coupon rate decreases. Short-term bonds typically have lower durations than longer-term bonds, but the duration is still dependent on the coupon rate.

The Duration Is Independent of the Coupon Rate Only for Which