The rate of change in duration values is less than the rate of change in maturity.

Question

Quizplus · Accepted Answer

Duration measures the sensitivity of bond prices to changes in interest rates, while maturity measures the time until the bond's face value is paid back to the investor. The rate of change in duration values is typically lower than the rate of change in maturity, as duration takes into account factors such as coupon payments that can mitigate the impact of interest rate changes on price.

The Rate of Change in Duration Values Is Less Than