Question: 1)The duration of a bond increases with a decrease in: I. Term to maturity II. Yield to maturity III. Coupon rate I only I and

1)The duration of a bond increases with a decrease in: I. Term to maturity II. Yield to maturity III. Coupon rate

I only

I and II only

II and III only

I, II, and III

2)When you calculate the duration, the weight in year t is equal to ____________.

the dollar amount of the investment received in year t

the percentage of the future value of the investment received in year t

the present value of the dollar amount of the investment received in year t

the percentage of the total present value of the investment received in year t

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