The duration of a bond normally increases with an increase in _________.
I.term-to-maturity
II.yield-to-maturity.
III.coupon rate

Question

Quizplus · Accepted Answer

The duration of a bond is mainly influenced by the term-to-maturity, as the longer the term, the greater the sensitivity to changes in interest rates. Yield-to-maturity and coupon rate may influence the bond price, but they do not necessarily affect the duration.

The Duration of a Bond Normally Increases with an Increase