When Interest Rates Decline, the Duration of a 10-Year Bond

question 9

Multiple Choice

When interest rates decline, the duration of a 10-year bond selling at a premium

• A) increases.
• B) decreases.
• C) remains the same.
• D) increases at first, then declines.
• E) decreases at first, then increases.

---

Definitions:

Publicly Held

Describes a company whose shares are traded openly on stock exchanges, allowing members of the general public to buy and sell shares.

Corporate Bylaws

The rules and procedures established by a corporation to govern its operations and management.

Internal Management

The processes, policies, and procedures that govern the day-to-day operations and decision-making within an organization or entity.

Corporate Structure

The organizational design and operational framework of a corporation, defining its departments, roles, authorities, and communication processes.