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A 10-Year Maturity Coupon Bond Has a Six-Year Duration

Question 41

Multiple Choice

A 10-year maturity coupon bond has a six-year duration. An equivalent 20-year bond with the same coupon has a duration

A) equal to 12 years.
B) less than six years.
C) less than 12 years.
D) equal to six years.
E) greater than 20 years.

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