Which one is true? a. the higher the coupon payment, the lower the bond’s duration b....
| Which one is true? | |||||||
| a. | the higher the coupon payment, the lower the bond’s duration | ||||||
| b. | the higher the yield to maturity, the lower the bond’s duration | ||||||
| c. | duration increases with maturity but at a decreasing rate | ||||||
| d. | all of the above | ||||||
Homework Answers
Option A. the higher the coupon payment, the lower the bond’s duration
As the Bond wiith higher coupon payment will have a lower Bond's duration as Higher Coupon Payments will pay back the Price of Bond early than the Bond with lower Couon rate.
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Which one is true?
a.
the higher the coupon payment, the lower the bond’s
duration
b....
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