Multiple Choice
The duration of a coupon bond_________ at a _________rate as its term .
A) increases; diminishing; increases
B) increases; diminishing; decreases
C) increases; increasing; increases
D) increases; increasing; decreases
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q39: Modified duration is adjusted for the curvature
Q40: Critically discuss the use of duration to
Q41: A perpetuity (a bond with an infinite
Q42: In the immunisation process:<br>A) DGAP is not
Q43: The error in the approximation increases as
Q45: The performance of fund managers is often
Q46: Insulating a portfolio from the effects of
Q47: DGAP protects us against uniform changes in
Q48: When DGAP < 0, DA is below
Q49: Can derivatives be used to enhance hedging?