Which of the following is true?
A) Holding other things constant, the duration of a bond decreases with time to maturity.
B) Given time to maturity, the duration of a zero-coupon increases with yield to maturity.
C) Given time to maturity and yield to maturity, the duration of a bond is higher when the coupon rate is lower.
D) Duration is a better measure of price sensitivity to interest rate changes than is time to maturity.
E) Given time to maturity and yield to maturity, the duration of a bond is higher when the coupon rate is lower and duration is a better measure of price sensitivity to interest rate changes than is time to maturity
Correct Answer:
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Q1: The duration of a bond is a
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Q6: The "modified duration" used by practitioners is
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A)the
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A)
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Q11: Holding other factors constant, the interest-rate risk
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