Multiple Choice
Which of the following statements are true?I) Holding other things constant, the duration of a bond decreases with time to maturity.II) Given time to maturity, the duration of a zero-coupon increases with yield to maturity.III) Given time to maturity and yield to maturity, the duration of a bond is higher when the coupon rate is lower.IV) Duration is a better measure of price sensitivity to interest-rate changes than is time to maturity.
A) I only
B) I and II
C) III only
D) III and IV
E) I, II, and IV
Correct Answer:
Verified
Correct Answer:
Verified
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