All Else Being Equal, a Bond with a Higher Coupon

question 3

Multiple Choice

All else being equal, a bond with a higher coupon has a duration that is ________ than that of a bond with a lower coupon.

• A) greater than.
• B) less than.
• C) equal to.
• D) undetermined in relation to.

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Definitions:

SA Node

The sinoatrial node, a group of cells located in the right atrium of the heart, acts as a natural pacemaker by generating electrical impulses that initiate each heartbeat.

Pacemaker

Cells of the sinoatrial node of the heart; electrical device designed to mimic the normal electrical patterns of the heart.

Hepatic Portal Vein

A vein that transports blood to the liver from the spleen and gastrointestinal tract.

AV Node

A part of the heart's electrical system that helps regulate the heart rate by delaying the transmission of electrical impulses.