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duration __________ when maturity decreases. duration decreases when the coupon rate __________. duration __________ when yield-to-maturity (YTM) decreases.

duration __________ when maturity decreases. duration decreases when the coupon rate __________. duration __________ when yield-to-maturity (YTM) decreases.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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All other things being constant,

 

  • duration __________ when maturity decreases.
  • duration decreases when the coupon rate __________.
  • duration __________ when yield-to-maturity (YTM) decreases.

 

 

A.

 

increase    /           decreases        /          decreases

 

B.

 

increase    /           increases         /          decreases

 

C.

 

decreases  /           decreases        /          increases

 

D.

 

decreases  /           increases         /          increases

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