Question: True/False (1 points) 1. 2 A bond's duration remains the same whether interest rates rise or fall All else the same, a 2% coupon bond

 True/False (1 points) 1. 2 A bond's duration remains the same

True/False (1 points) 1. 2 A bond's duration remains the same whether interest rates rise or fall All else the same, a 2% coupon bond has more interest rate risk than a 6% coupon bond. Duration doesn't explain the entirety of a bond's sensitivity, but it is pretty good. 3

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!