Which of the following statements is (are)correct regarding duration?
A)In comparing two bonds with the same yield to maturity and the same maturity,a bond with a higher coupon rate will have a longer duration.
B)In comparing two loans with the same maturity and the same interest rate,a fully amortized loan will have a shorter duration than a loan with a balloon payment.
C)The duration will always be shorter than the maturity for all debt instruments.
D)All of the options are correct.
E)B and C

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is (are)correct regarding duration?
A)In comparing two bonds with the same yield to maturity and the same maturity,a bond with a higher coupon rate will have a longer duration.
B)In comparing two loans with the same maturity and the same interest rate,a fully amortized loan will have a shorter duration than a loan with a balloon payment.
C)The duration will always be shorter than the maturity for all debt instruments.
D)All of the options are correct.
E)B and C

Which of the Following Statements Is (Are)correct Regarding Duration