9-20 Larger coupon payments on a fixed-income asset cause the present value weights of the cash flows to be lower in the duration calculation.

Name: 9-20 Larger coupon payments on a fixed-income asset cause the present value weights of the cash flows to be lower in the duration calculation.
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Question

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Larger coupon payments increase the present value weights of the cash flows, as they are received earlier and have a higher present value, thus increasing the duration.

9-20 Larger Coupon Payments on a Fixed-Income Asset Cause the Present