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Duration of a bond normally increases with an increase in:
Suggested Answer: A
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35 comments · newest first
ME
Merilyn
10 months ago
Just to clarify, duration is all about interest rate sensitivity!
MA
Martha
11 months ago
Wait, are we sure about A? I thought yield to maturity played a bigger role.
ED
Edelmira
11 months ago
A makes sense, longer duration = more interest rate risk.
MU
Murray
11 months ago
I thought it was B, higher coupon rates mean more cash flow, right?
AH
Ahmed
11 months ago
Definitely A, time to maturity is key!
SU
Sue
11 months ago
I feel like par value doesn't really affect duration, but I'm not completely confident. It seems like a trick option.
AL
Aleta
12 months ago
I practiced a question similar to this, and I think it was about how yield to maturity impacts duration. Could that be the answer?
TA
Tawna
12 months ago
I'm not entirely sure, but I remember something about coupon rates affecting duration too. Maybe it's related?
DE
Denae
12 months ago
I think the duration of a bond increases with the time to maturity, right? That seems to be a key concept we covered.
AD
Adelle
12 months ago
Wait, I thought duration was also affected by the coupon rate and yield to maturity. I better review my notes before answering this one.
HY
Hyman
12 months ago
Okay, I've got this. Duration increases with time to maturity, so the answer must be A.
CA
Carmen
1 year ago
Hmm, I'm a bit unsure about this one. I know duration is related to bond maturity, but I'm not sure how the other factors like coupon rate and yield to maturity come into play.
TY
Tyra
1 year ago
This seems like a straightforward question on bond duration. I'll think through the factors that affect bond duration and choose the best answer.
AL
Aleta
1 year ago
I'm confident the answer is A. Duration is directly proportional to time to maturity, so an increase in maturity will increase the duration.
JA
Jamal
1 year ago
Okay, I've reviewed the GDPR guidelines, and I believe the answer is B. Processing the data is necessary for the tax advisor to comply with their legal obligations.
CH
Chery
1 year ago
I think the answer is A. Workforce Manager would automatically append a number in sequence to the duplicate scenario name to avoid conflicts.
FL
Florinda
2 years ago
Bonds? Aren't those those things you buy to keep your money safe? I'm going with C) just to be safe.
AL
Alberto
2 years ago
No problem! It's always good to learn more about different investment options.
AR
Armanda
2 years ago
I see, so it's not about keeping money safe. Thanks for the info!
JO
Johna
2 years ago
Yes, bonds are a way to invest money. But the duration actually increases with A) time to maturity.
CE
Cecilia
2 years ago
I think Mitsue is correct, as the yield to maturity affects the bond's price sensitivity to interest rate changes.
ST
Stephaine
2 years ago
Hmm, I think it's D) par value. Wait, what's a bond again?
LI
Lisbeth
2 years ago
Oh, I see. Thanks for clarifying!
JU
Justine
2 years ago
No, it actually increases with A) time to maturity.
AL
Alaine
2 years ago
A) time to maturity.
CA
Catalina
2 years ago
B) Coupon rate, no doubt. I've got this bond thing down.
DO
Donte
2 years ago
C) Yield to maturity seems like the correct answer. Gotta love those financial concepts!
SA
Sabrina
2 years ago
A) Time to maturity, of course! I learned that in my finance class.
AL
Alfreda
2 years ago
D) No, duration is mainly influenced by the time to maturity.
AZ
Azalee
2 years ago
C) So, it's not affected by the coupon rate or yield to maturity?
FR
Franchesca
2 years ago
B) Yes, the longer the time to maturity, the longer the duration.
LO
Loren
2 years ago
A) Time to maturity, of course! I learned that in my finance class.
MI
Mitsue
2 years ago
C) yield to maturity.
GA
Galen
2 years ago
I agree with Louis, because the longer the time to maturity, the longer the bond's duration.
LO
Louis
2 years ago
A) time to maturity.