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Exam CFA-Level-I Topic 2 Question 3 Discussion
CFA Institute Exam CFA-Level-I Topic 2 Question 3 Discussion
Actual exam question for CFA Institute's CFA-Level-I exam
Question #: 3
Topic #: 2
[All CFA-Level-I Questions]
Duration of a bond normally increases with an increase in:
A
time to maturity.
B
coupon rate.
C
yield to maturity.
D
par value.
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Suggested Answer:
A
by
Luis
at
Sep 12, 2024, 10:16 AM
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Florinda
10 months ago
Bonds? Aren't those those things you buy to keep your money safe? I'm going with C) just to be safe.
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Alberto
8 months ago
No problem! It's always good to learn more about different investment options.
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Armanda
8 months ago
I see, so it's not about keeping money safe. Thanks for the info!
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Johna
9 months ago
Yes, bonds are a way to invest money. But the duration actually increases with A) time to maturity.
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Cecilia
10 months ago
I think Mitsue is correct, as the yield to maturity affects the bond's price sensitivity to interest rate changes.
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Stephaine
10 months ago
Hmm, I think it's D) par value. Wait, what's a bond again?
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Lisbeth
9 months ago
Oh, I see. Thanks for clarifying!
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Justine
9 months ago
No, it actually increases with A) time to maturity.
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Alaine
10 months ago
A) time to maturity.
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Catalina
10 months ago
B) Coupon rate, no doubt. I've got this bond thing down.
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Donte
10 months ago
C) Yield to maturity seems like the correct answer. Gotta love those financial concepts!
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Sabrina
10 months ago
A) Time to maturity, of course! I learned that in my finance class.
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Alfreda
9 months ago
D) No, duration is mainly influenced by the time to maturity.
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Azalee
9 months ago
C) So, it's not affected by the coupon rate or yield to maturity?
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Franchesca
10 months ago
B) Yes, the longer the time to maturity, the longer the duration.
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Loren
10 months ago
A) Time to maturity, of course! I learned that in my finance class.
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Mitsue
10 months ago
C) yield to maturity.
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Galen
10 months ago
I agree with Louis, because the longer the time to maturity, the longer the bond's duration.
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Louis
11 months ago
A) time to maturity.
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Florinda
10 months agoAlberto
8 months agoArmanda
8 months agoJohna
9 months agoCecilia
10 months agoStephaine
10 months agoLisbeth
9 months agoJustine
9 months agoAlaine
10 months agoCatalina
10 months agoDonte
10 months agoSabrina
10 months agoAlfreda
9 months agoAzalee
9 months agoFranchesca
10 months agoLoren
10 months agoMitsue
10 months agoGalen
10 months agoLouis
11 months ago