The duration of a bond normally increases with an increase in
A) term to maturity.
B) yield to maturity.
C) coupon rate.
D) all of these.
E) none of these.

Question

Quizplus · Accepted Answer

The duration of a bond is directly related to the term to maturity, meaning that as the time remaining until the bond's maturity date increases, so does its duration. Yield to maturity and coupon rate can also affect a bond's duration, but not in a consistent or predictable manner. Therefore, choice A is the best answer.

The Duration of a Bond Normally Increases with an Increase