Question 12 Which of the following is true? O Bonds with higher coupon rates have longer durations, everything else the same. O The longer the maturity of a bond, the lower the duration. O Zero coupon bonds have durations greater than their maturities. O Coupon bonds have durations shorter than their maturitios

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 12
Which of the following is true?
O Bonds with higher coupon rates have longer durations, everything else the same.
O The longer the maturity of a bond, the lower the duration.
Zero coupon bonds have durations greater than their maturities.
Coupon bonds have durations shorter than their maturities
Transcribed Image Text:Question 12 Which of the following is true? O Bonds with higher coupon rates have longer durations, everything else the same. O The longer the maturity of a bond, the lower the duration. Zero coupon bonds have durations greater than their maturities. Coupon bonds have durations shorter than their maturities
Question 11
Bond price is:
O Inversely related to coupon rate and positively related to interest rate.
O Positivoly related to coupon rate and inversely related to interest rate.
O Positively related to coupon rate and interest rate
O Inversely related to coupon rate and interest rate
A Moving to another question will save this response.
HUAWEI
Transcribed Image Text:Question 11 Bond price is: O Inversely related to coupon rate and positively related to interest rate. O Positivoly related to coupon rate and inversely related to interest rate. O Positively related to coupon rate and interest rate O Inversely related to coupon rate and interest rate A Moving to another question will save this response. HUAWEI
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