The higher the interest rate is the higher the duration,all else being equal.

Name: The higher the interest rate is the higher the duration,all else being equal.
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Question

Quizplus · Accepted Answer

Duration, in the context of bonds, measures a bond's sensitivity to interest rate changes. A higher interest rate typically leads to a lower duration because the present value of the bond's future cash flows is discounted at a higher rate, making the bond less sensitive to further changes in interest rates.

The Higher the Interest Rate Is the Higher the Duration,all