Based on the Concept of Bond Duration, Which One of the Following

question 84

Multiple Choice

Based on the concept of bond duration, which one of the following statements is correct?

• A)Lower coupons result in shorter durations.
• B)Longer maturities mean shorter durations.
• C)Higher yields (YTMs)lead to longer durations.
• D)Longer durations mean greater volatility.

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Definitions:

Right-to-work Laws

Legislation that prohibits labor agreements from requiring workers to join a union as a condition of employment, aiming to ensure freedom of choice for employees.

Geographic Immobility

A situation where individuals or factors of production are unable to move freely from one location to another, often leading to inefficiencies in labor markets.

Noncompeting Groups

Collections of workers who do not compete with each other for employment because the skill and training of the workers in one group are substantially different from those of the workers in other groups.

Collective Bargaining

The negotiation of labor contracts between labor unions and firms or government entities.