True or false? Explain. a. Longer-maturity bonds necessarily have longer durations. b. The longer a bonds duration,

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True or false? Explain.
a. Longer-maturity bonds necessarily have longer durations.
b. The longer a bond’s duration, the lower its volatility.
c. Other things equal, the lower the bond coupon, the higher its volatility.
d. If interest rates rise, bond durations rise also.

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Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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