Which One of the Following Is a Correct Statement Concerning

question 27

Multiple Choice

Which one of the following is a correct statement concerning duration

• A)The higher the yield to maturity, the greater the duration.
• B)The higher the coupon, the shorter the duration.
• C)The difference in duration can be large between two bonds with different coupons each maturing in more than 15 years.
• D)The duration is the same as term to maturity only in the case of zero-coupon bonds.
• E)The higher the coupon, the shorter the duration; the difference in duration can be large between two bonds with different coupons each maturing in more than 15 years; and the duration is the same as term to maturity only in the case of zero-coupon bonds.

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Definitions:

Multivariate Regression Analysis

A statistical technique used to model and analyze the relationships between multiple independent variables and a single dependent variable.

Dependent Variables

Outcomes or variables in research whose changes are influenced by independent variables.

Regression Analysis

A statistical method used to examine the relationship between a dependent variable and one or more independent variables.

Quantitative Forecasting

A method of predicting future events, demands, or trends based on numerical data and statistical analysis.