The duration of a bond is determined by a combination of the maturity date and value,and

Question

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The duration of a bond is primarily determined by its maturity date and value, but it is also influenced by the pattern of coupon payments. A bond with regular and large coupon payments will have a shorter duration than a bond with smaller and less frequent coupon payments. Therefore, option A is the correct choice. Options B and C refer to call and put premiums, which are typically associated with bond options and do not impact the duration of a bond. Option D is incorrect as the correct answer is A.

The Duration of a Bond Is Determined by a Combination