Which one of the following is a correct statement concerning duration
A)The higher the yield to maturity, the greater the duration.
B)The higher the coupon, the shorter the duration.
C)The difference in duration can be large between two bonds with different coupons each maturing in more than 15 years.
D)The duration is the same as term to maturity only in the case of zero-coupon bonds.
E)The higher the coupon, the shorter the duration; the difference in duration can be large between two bonds with different coupons each maturing in more than 15 years; and the duration is the same as term to maturity only in the case of zero-coupon bonds.

Question

Quizplus · Accepted Answer

The relationship between duration and yield to maturity is an inverse one; as is the relationship between duration and coupon rate.The difference in the durations of longer-term bonds of varying coupons (high coupon vs.zero) is considerable.Duration equals term to maturity only with zeros.

Which One of the Following Is a Correct Statement Concerning