Multiple Choice
A 10-year maturity coupon bond has a 6-year duration. An equivalent 20-year bond with the same coupon has a duration
A) equal to 12 years.
B) less than 6 years.
C) less than 12 years.
D) equal to 6 years.
E) greater than 20 years.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q13: Explain the effects of coupon and maturity
Q14: The greater a security's coupon,the lower the
Q25: A zero coupon bond has a duration
Q51: An annual payment bond with a $1,000
Q52: Which would have a longer duration: a)
Q56: An annual payment bond has a 9%
Q58: The _ the coupon and the _
Q59: A 15-year corporate bond pays $40 interest
Q60: A 15-year, 7% coupon annual payment corporate
Q61: For large interest rate increases, duration _