- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 46. Understanding Fixed-Income Risk and Return
- Subject 3. Properties of Bond Duration
CFA Practice Question
The higher the coupon rate, the ______ the Macaulay duration for a coupon bond.
B. lower
C. The relationship depends if the bond is a premium bond or discount bond.
A. higher
B. lower
C. The relationship depends if the bond is a premium bond or discount bond.
Correct Answer: B
Coupon rate is inversely related to the Macaulay duration.
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