Ceteris Paribus, the Duration of a Bond Is Negatively Correlated

question 62

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 are correct.

---

Definitions:

Operating Activities

These involve the primary day-to-day activities of a business, such as sales and the purchase of goods or services, which are reflected in its cash flow.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time, allowing for analysis of trends in assets, liabilities, and equity.

Net Income

Net Income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Property, Plant

Assets that are used in operations and have a useful life longer than one year, such as buildings, machinery, and equipment.