The higher the market yield (R) relative to coupon rate: The higher the duration of a bond and the lower the price of the bond. The higher the price of a bond. The lower the duration of a bond and the higher the price of the bond The lower the duration of a bond and the lower the price of the bond Market yield has no impact on a bond’s duration.
The higher the market yield (R) relative to coupon rate: The higher the duration of a bond and the lower the price of the bond. The higher the price of a bond. The lower the duration of a bond and the higher the price of the bond The lower the duration of a bond and the lower the price of the bond Market yield has no impact on a bond’s duration.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q. 9 The higher the market yield (R) relative to coupon rate:
The higher the duration of a bond and the lower the price of the bond.
The higher the price of a bond.
The lower the duration of a bond and the higher the price of the bond
The lower the duration of a bond and the lower the price of the bond
Market yield has no impact on a bond’s duration.
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