When interest rates decline, what happens to the duration of a 30-year bond selling at a premium?
Question:
When interest rates decline, what happens to the duration of a 30-year bond selling at a premium?
a. It increases.
b. It decreases.
c. It remains the same.
d. It increases at first, then declines.
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The most likely effect on the duration of a 30year bond selling at a premium when interest rates decline is b It decreases Heres why When interest rat...View the full answer
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ISBN: 9781266824012
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