2. A manager wants to swap a bond for a bond with the same price but a higher duration. Which of the following bond characteristics would be associated with a higher duration? (a) A lower coupon rate with a shorter term to maturity (b) A lower coupon rate with a longer term to maturity (c) A higher coupon rate with less frequent payment (d) A higher coupon rate with more frequent payment 2

2. A manager wants to swap a bond for a bond with the same price but a higher duration. Which of the following bond characteristics would be associated with a higher duration? (a) A lower coupon rate with a shorter term to maturity (b) A lower coupon rate with a longer term to maturity (c) A higher coupon rate with less frequent payment (d) A higher coupon rate with more frequent payment 2

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 15QTD

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