All Other Things Equal, a Bond's Duration Is ________

question 7

Multiple Choice

All other things equal, a bond's duration is ________.

• A) higher when the coupon rate is higher
• B) lower when the coupon rate is higher
• C) the same when the coupon rate is higher
• D) indeterminable when the coupon rate is high

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Definitions:

Exporting

The selling of goods or services produced in one country to buyers in another country.

Direct Investment

An investment involving the purchase of the physical assets or a significant amount of ownership (stock) of a company in another country.

Indirect Exporting

A method of entering foreign markets by selling products through intermediaries, rather than directly to overseas customers.

Export Duties

Taxes imposed on goods shipped out of a country.