The Duration of a Bond Will Increase as the Time

question 23

Multiple Choice

The duration of a bond will increase as the time to maturity__________ and/or as the YTM on the bond__________

• A) increases; decreases.
• B) decreases; increases.
• C) decreases; decreases.
• D) increases; increases.

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Definitions:

Autos

Short for automobiles, referring to motor vehicles designed for passenger transportation.

Capital-Intensive

A capital-intensive process or business requires a high initial investment in machinery, equipment, or infrastructure relative to labor to produce goods or services.

Sunflower Seeds

Edible seeds from the sunflower plant, often eaten as a snack, used in recipes, or processed for their oil.

Chemicals

Chemicals are substances formed from chemical reactions between elements or compounds, and they have specific chemical compositions and properties.