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.

---

Definitions:

Institution

A significant establishment, organization, or association formed for a specific purpose, often public, educational, or charitable in nature.

Office of Management

An administrative division, often in governments or corporations, responsible for managing resources and budgeting.

Budget (OMB)

The process and document prepared by the Office of Management and Budget that outlines the federal government's expenses and revenues for the fiscal year.

President Veto

A power granted to the President to reject bills passed by both houses of Congress, necessitating a two-thirds majority in both houses to override the veto.