As the Yield to Maturity on a Bond Increases, the Duration

question 30

True/False

As the yield to maturity on a bond increases, the duration also increases because of the effect of present value on duration.

---

Definitions:

Low-gradient River

A river with a gentle slope, resulting in slow water movement and often meandering courses.

Downcutting

The erosional process by which a river cuts downward into its bed, deepening the river channel.

Discharge

The volume of water flowing through a river or stream or out of a particular structure, often measured in cubic meters per second.

Cubic Meters

A unit of volume in the metric system, indicating the volume of a cube whose sides are each one meter in length.