Assuming No Change in Interest Rates, the Duration of a Coupon

question 97

Multiple Choice

Assuming no change in interest rates, the duration of a coupon bond

• A) stays constant.
• B) declines more slowly than the term to maturity.
• C) declines more quickly than the term to maturity
• D) increases at a slower rate than the term to maturity.
• E) changes in line with the term to maturity.

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Definitions:

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The commercial activity of buying and selling crude oil and its derivatives, a crucial part of the global economy and energy sector.

Japanese Attack

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A U.S. state located in the Pacific Ocean, known for its diverse natural scenery, warm tropical climate, and rich cultural history.

Pearl Harbor

The site of a surprise military attack by the Japanese Navy against the United States on December 7, 1941, leading to the U.S. entering World War II.