Two bonds have the same maturity, risk rating, and face value, but have different coupon rates. The bond with a lower coupon rate will have a longer duration.

Name: Two bonds have the same maturity, risk rating, and face value, but have different coupon rates. The bond with a lower coupon rate will have a longer duration.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

The duration of a bond is inversely related to its coupon rate. Therefore, a bond with a lower coupon rate will have a longer duration.

Two Bonds Have the Same Maturity, Risk Rating, and Face