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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b1d852f-d65d-4bfd-9cc3-fd21f3fb2857%2F99a49323-878e-45c9-8f83-3de1e66a53c9%2F43ly6b5_processed.jpeg&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b1d852f-d65d-4bfd-9cc3-fd21f3fb2857%2F99a49323-878e-45c9-8f83-3de1e66a53c9%2Fr07007_processed.jpeg&w=3840&q=75)
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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