Which of the following is not true?
A) Holding other things constant, the duration of a bond increases with time to maturity.
B) Given time to maturity, the duration of a zero-coupon decreases 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) All of the above.
Correct Answer:
Verified
Q3: The "modified duration" used by practitioners is
Q4: The duration of a 5-year zero-coupon bond
Q5: Ceteris paribus,the duration of a bond is
Q6: Holding other factors constant,the interest-rate risk of
Q7: The duration of a bond is a
Q8: The duration of a par value bond
Q9: Ceteris paribus,the duration of a bond is
Q10: Holding other factors constant,the interest-rate risk of
Q11: Holding other factors constant, which one of
Q11: The interest-rate risk of a bond is
A)the
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