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The duration of a bond with a 1 5 % coupon rate is than the duration of a similar bond with a 1 0 %

The duration of a bond with a

15 %

coupon rate is

than the duration of a similar

bond with a

10 %

coupon rate. If the yield to maturity increases the bond's duration

.

longer; increases

.

longer; decreases

.

shorter, increases

.

shorter; decreases

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