(TCO 4) The highest duration and maximum price sensitivity relative to years to maturity are produced by _____. (Points : 3)

a coupon rate equal to the market rate a low coupon rate a zero-coupon None of the above

The only difference between the simple weighted average life of a bond and duration of a bond is _____. (Points : 3)

the timing of interest payments that duration involves the present value of individual cash flows that duration involves the using of the stated value of individual cash flows None of the above

The duration of a 40-year, $1,000 bond at a market rate of 4% is _____ the duration of an identical bond at a market rate of 6%. (Points : 3)

greater than less than equal to There is not enough information to tell