For a Given Maturity Fixed-Income Asset, Duration Increases as the Promised

question 64

True/False

For a given maturity fixed-income asset, duration increases as the promised interest payment declines.

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Definitions:

Ampacity

The maximum current-carrying capacity of a wire or device.

Conductor

A device or material that permits current to flow through it easily.

Circular Mil

An area measure of wire determined by squaring the diameter of the wire in mils (1 mil = 0.001 inch). Example: A wire with a diameter of 0.020 inch would have a circular mil area of 400 cmil (20 x 20 = 400).

Radius

A straight line from the center to the circumference of a circle or sphere.