The Duration of a Bond Is the Weighted Average Maturity

question 146

Multiple Choice

The duration of a bond is the weighted average maturity of the future cash flows expected to be received on a bond.Which of the following statements concerning duration is true?

• A)The longer the time to maturity,the greater the duration.
• B)The higher the coupon rate,the lower the duration.
• C)The shorter the duration,the greater the price volatility.
• D)All of the options are true.
• E)None of the options is true.

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