Securities whose value comes mostly from later cash flows have a shorter duration than do securities whose value comes mostly from earlier cash flows.

Question

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Duration measures the sensitivity of a bond's price to changes in interest rates, and securities that receive most of their value from later cash flows (like a bond paying mostly at maturity) have a longer duration because they are more affected by interest rate changes over time compared to securities that receive most of their value from earlier cash flows.

Securities Whose Value Comes Mostly from Later Cash Flows Have