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Question
Which of the following statements about duration is most correct?a. Duration for a coupon bond is greater than its maturity.
b. For a zero-coupon bond, the duration is equal to its maturity.
c. For bonds with the same maturity and selling at the same yield, the lower the coupon rate, the greater a bond's duration and volatility.
d. For bonds with the same coupon rate and selling at the same yield, the longer the maturity, the larger the duration and price sensitivity.
e. b, c, and d only.
Answer
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