9-45 The rate of change in duration values is less than the rate of change in maturity.

Name: 9-45 The rate of change in duration values is less than the rate of change in maturity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Duration measures the sensitivity of the bond price to changes in interest rates, while maturity is the time period until the bond reaches its full face value. Since duration takes into account the timing and amount of cash flows, it typically changes at a slower rate than maturity. Therefore, the statement is true.

9-45 the Rate of Change in Duration Values Is Less