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1)The duration of a bond increases with a decrease in: I. Term to maturity II. Yield to maturity III. Coupon rate I only I and
1)The duration of a bond increases with a decrease in: I. Term to maturity II. Yield to maturity III. Coupon rate
I only | ||
I and II only | ||
II and III only | ||
I, II, and III |
2)When you calculate the duration, the weight in year t is equal to ____________.
the dollar amount of the investment received in year t | ||
the percentage of the future value of the investment received in year t | ||
the present value of the dollar amount of the investment received in year t | ||
the percentage of the total present value of the investment received in year t |
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