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Assume the following:   Bond A           coupon = 6%, maturity = 5 years, yield to maturity = 6% Bond B            coupon = 0%, maturity = 5 years, yield to maturity = 6% Bond C            coupon = 6%, maturity = 5 years, yield to maturity = 6.5%   Which of the following statements concerning duration is correct? Group of answer choices   A. Duration of CDuration of B>Duration of C. C. Duration of C < Duration of A < Duration of B. D. Duration of A< Duration of B

Assume the following:   Bond A           coupon = 6%, maturity = 5 years, yield to maturity = 6% Bond B            coupon = 0%, maturity = 5 years, yield to maturity = 6% Bond C            coupon = 6%, maturity = 5 years, yield to maturity = 6.5%   Which of the following statements concerning duration is correct? Group of answer choices   A. Duration of CDuration of B>Duration of C. C. Duration of C < Duration of A < Duration of B. D. Duration of A< Duration of B

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 8FPE: Describe and differentiate between a bonds (a) current yield and (b) yield to maturity. Why are...
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Assume the following:

 

Bond A           coupon = 6%, maturity = 5 years, yield to maturity = 6%

Bond B            coupon = 0%, maturity = 5 years, yield to maturity = 6%

Bond C            coupon = 6%, maturity = 5 years, yield to maturity = 6.5%

 

Which of the following statements concerning duration is correct?

Group of answer choices
 
A. Duration of C<Duration of A=Duration of B.
B. Duration of A>Duration of B>Duration of C.
C. Duration of C < Duration of A < Duration of B.
D. Duration of A< Duration of B<Duration of C.
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