- CFA Exams
- CFA Exam: Level I 2021
- 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.
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