The maturity of a fixed-income security is always smaller than its duration.

Question

Quizplus · Accepted Answer

The maturity of a fixed-income security refers to the length of time until the principal is repaid. The duration, on the other hand, is a measure of the sensitivity of a security's price to changes in interest rates. While there may be cases where the maturity is smaller than the duration, there is no general rule that applies to all fixed-income securities. In fact, in some cases, the duration of a security may be shorter than its maturity, indicating that the security has a lower sensitivity to interest rate movements.

The Maturity of a Fixed-Income Security Is Always Smaller Than