CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

The higher the yield-to-maturity, the ______ the Macaulay duration for a coupon 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.