Question
A manager wants to swap a bond for a bond with the same price but higher duration. Which of the following bond characteristics would be
A manager wants to swap a bond for a bond with the same price but higher duration. Which of the following bond characteristics would be associated with a higher duration?
I. A higher coupon rate
II. Less frequent coupon payments
III. A longer term to maturity
IV. A lower yield
(a) I, II, and III
(b) III and IV
(c) I and II
(d) II, III, and IV
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
978-0357438480, 0357438485
