For Two Bonds with Equal Coupons, Duration Would Be Higher

question 37

True/False

For two bonds with equal coupons, duration would be higher for the bond with the shortest maturity.

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Definitions:

Fair Market Value

The price at which a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts and not under any compulsion, would likely agree to transact.

Deontological Ethical Theories

Ethical theories that place emphasis on adherence to duties and rules as the basis of moral actions.

Actions

Legal proceedings taken in a court or the steps taken in the execution of a legal right.

Decisions

Conclusions or resolutions reached after consideration, often referring to the outcomes of deliberations in legal, personal, or organizational contexts.