are the following statements about the bind duration correct ? changes in the value of a...

are the following statements about the bind duration correct ?

changes in the value of a bond are invesely related to changes in the rate of return _______ correct / incorrect

Short term binds have greater interest rate risk than long term bonds _______ correct / incorrect

As the interest rate increase, the bond becomes more sensitive to further rate changes ________ correct / incorrect

As the bond coupon increases, the bond becomes less sensitive to interest rate changes ________ correct / incorrect

The duration of a zero-coupon bond is the same its maturity _______ correct / incorrect

Expert Solution

changes in the value of a bond are invesely related to changes in the rate of return correct

Short term bonds have greater interest rate risk than long term bonds incorrect

As the interest rate increase, the bond becomes more sensitive to further rate changes incorrect

As the bond coupon increases, the bond becomes less sensitive to interest rate changes _incorrect

The duration of a zero-coupon bond is the same its maturity correct

jeff jeffy answered 2 years ago

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