Multiple Choice
Which of the following is not true?
A) Holding other things constant, the duration of a bond increases with time to maturity.
B) Given time to maturity, the duration of a zero-coupon decreases with yield to maturity.
C) Given time to maturity and yield to maturity, the duration of a bond is higher when the coupon rate is lower.
D) Duration is a better measure of price sensitivity to interest-rate changes than is time to maturity.
E) All of the options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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