Based on the Concept of Bond Duration, Which One of the Following

question 61

Multiple Choice

Based on the concept of bond duration, which one of the following statements is correct?

• A) Higher yields (YTMs) lead to longer durations.
• B) Longer maturities mean shorter durations.
• C) Lower coupons result in shorter durations.
• D) Longer durations mean greater volatility.

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Definitions:

Net Income

Net income refers to the total earnings of a company once all costs, taxes, and expenses have been deducted from the overall revenue.

Retirement

The act of leaving one's job and ceasing to work, typically upon reaching a certain age or for health reasons.

Capital Balances

The amount of capital that remains in a partnership or firm after liabilities have been accounted for, representing the owners' equity.

Partnership Assets

Assets owned by a partnership, representing the investment and contributions of the partners.