True or false? Explain. a. Longer-maturity bonds necessarily have longer durations. b. The longer a bonds duration,
Question:
a. Longer-maturity bonds necessarily have longer durations.
b. The longer a bond’s duration, the lower its volatility.
c. Other things equal, the lower the bond coupon, the higher its volatility.
d. If interest rates rise, bond durations rise also.
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a False Duration depends on the coupon as well as the maturity ...View the full answer
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Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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