- CFA Exams
- CFA Level I Exam
- Study Session 15. Fixed Income (2)
- Reading 46. Understanding Fixed-Income Risk and Return
- Subject 3. Properties of Bond Duration
CFA Practice Question
The higher the yield-to-maturity, 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
A higher yield-to-maturity reduces the weighted average of the time to receipt of cash flow.
User Contributed Comments 0
You need to log in first to add your comment.