The duration of a zero coupon bond is less than its maturity equal to its maturity greater than its maturity Indeterminable Portfolio duration is a simple average of the durations of the component bonds in the portfolio a nonlinear combination of the durations of the component bonds in the portfolio a weighted average of the durations of the component bonds in the portfolio None of the above A measure of how a non-Treasury bond's price will change if the spread sought by the market changes spread duration b. portfolio duration time duration convex duration For a given term to maturity and initial yield, the lower the coupon rate the greater the bond price b. the lower the price volatility c. the greater the price stability d. the greater the price volatility 16. For a given coupon rate and initial yield, the lower the longer the term to maturity. a. the greater the price volatility b. the lower the price volatility the greater the price stability d. the lower the price price stability Computation of the Total Return for a bond requires that we a. compute total coupon payments plus interest on interest for assumed reinvestment rate b. determine projected sale price at the end of the planned investment horizon C. relate the sum of results in 'a' and 'b' to initial price to obtain semiannual total return d. All of the steps above are required e. None of the the steps above is required