All Else Constant, Which of the Following Will Decrease the Macaulay

question 100

Multiple Choice

All else constant, which of the following will decrease the Macaulay duration of a straight bond?
I. reducing the coupon payment
II. shortening the time to maturity
III. lowering the yield to maturity

• A)I only
• B)II only
• C)II and III only
• D)I and II only
• E)I and III only

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