Regardless of its maturity date,it is very unusual for a coupon-paying bond to have duration greater than:
A)3 years.
B)5 years.
C)10 years.
D)15 years.

Question

Quizplus · Accepted Answer

Duration is a measure of a bond's sensitivity to interest rate changes, and for coupon-paying bonds, it is typically less than the bond's maturity. It is unusual for a coupon-paying bond to have a duration greater than 10 years because the coupon payments reduce the bond's duration compared to a zero-coupon bond of the same maturity.

Regardless of Its Maturity Date,it Is Very Unusual for a Coupon-Paying