Question

Which of the following is a true statement?

A. The longer the time to maturity of a security, the smaller will be the duration

B. The lower the coupon rate of a security, the higher the duration

C. For a given duration and change in interest rates, the change in the price of the security will be larger for a lower starting level of interest rates

D. The duration of a security remains constant no matter the level of market interest rates

E. All of the options are true statements.

Answer

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