Why Is Duration Important for Investing in Bonds

question 21

Multiple Choice

Why is duration important for investing in bonds?

• A) Investors need to know the relationship between interest rates and prices.
• B) Investors need to know the "average" maturity of the bonds they are considering.
• C) Investors need to know the coupon rates of the bonds they are considering.
• D) Investors need to know the yield to maturity.

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