Which One of the Following Is an Incorrect Statement Concerning

question 4

Multiple Choice

Which one of the following is an incorrect 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 is small 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)All of the statements are correct.

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Definitions:

Limited Information

The condition of having incomplete or insufficient data or knowledge available to make decisions or understand a situation fully.

Evaluating Alternative Solutions

The process of systematically comparing different options or strategies to determine the best course of action.

Benefits

Advantages or positive outcomes that come from certain actions or policies.

Costs

Costs represent the monetary value required for the production of goods or services, including expenses related to materials, labor, and overhead.