Ceteris Paribus, the Duration of a Bond Is Negatively Correlated

question 24

Multiple Choice

Ceteris paribus, the duration of a bond is negatively correlated with the bond's

• A)time to maturity.
• B)coupon rate.
• C)yield to maturity.
• D)coupon rate and yield to maturity.
• E)None of the options

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Definitions:

Consistency

The quality of always acting or performing in a similar manner over time.

Consensus

A general agreement among the members of a group or community, often achieved through open discussion and negotiation.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus.

Conditioned Stimulus

A stimulus that was neutral at first but becomes associated with an involuntary response through conditioning.