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Do you agree or not agree with this statement made by a finance student? Explain why....

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Finance

Do you agree or not agree with this statement made by a financestudent? Explain why. lf two bonds with the same term to maturityand the same yield have dierent coupon rates, the one with thehigher coupon rate will have the higher (longer) duration

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3.6 Ratings (450 Votes)
I do not agree with the students statementHigher the coupon rate higher the duration is a wrong statementbecause higher the coupon rate lower the durationThis is becausewhichcoupons are high then the price of bond isrecovered lot earlier than    See Answer
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Do you agree or not agree with this statement made by a financestudent? Explain why. lf two bonds with the same term to maturityand the same yield have dierent coupon rates, the one with thehigher coupon rate will have the higher (longer) duration

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