The Duration of a Bond Normally Increases with an Increase

question 27

Multiple Choice

The duration of a bond normally increases with an increase in

• A) term to maturity.
• B) yield to maturity.
• C) coupon rate.
• D) All of the options are correct.
• E) None of the options are correct.

---

Definitions:

Universality

A principle asserting that certain concepts or ideas have universal application or applicability across different cultures and contexts.

Finality

The quality or condition of being conclusive or definitive, marking the end of a process or an event.

Accept

To accept is to receive something willingly or to give consent or approval to something.

Kübler-Ross

Refers to the Kübler-Ross model, a theory that outlines five stages of grief people go through: denial, anger, bargaining, depression, and acceptance.