All Else Constant, Which of the Following Will Decrease the Macaulay

question 100

Multiple Choice

All else constant, which of the following will decrease the Macaulay duration of a straight bond?
I. reducing the coupon payment
II. shortening the time to maturity
III. lowering the yield to maturity

• A)I only
• B)II only
• C)II and III only
• D)I and II only
• E)I and III only

---

Definitions:

Direct Labour Cost

The cost that can be directly attributed to the production of goods or services, including wages and benefits for workers who are actively involved in the manufacturing process.

Direct Material

Raw materials that are directly traceable to the manufacturing of a specific product and are an essential component of its production.

Process Costing

An accounting methodology used for homogenous products, where costs are assigned to production processes or departments and averaged over the units produced.

Cost per Unit

The cost to produce a single unit of product, calculated by dividing the total production cost by the number of units produced.