Regarding bonds in the secondary market

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Reference no: EM131992838

1. Which is true about the "duration" of bonds?

A. The longer the term, the shorter the duration.

B. The lower the yield, the shorter the duration.

C. For zero-coupon bonds, the term is the duration.

D. Duration is related to yield (or internal rate of return) of a bond.

2. Regarding bonds in the secondary market...

A. their prices are unrelated to the prevailing interest rate environment.

B. prices of bonds with more time to maturity are less sensitive to the prevailing interest rate environnment.

C. prices of bonds with less time to maturity are less sensitive to the prevailing interest rate environnment.

D. their prices are related to the prevailing interest rate environment only if they are not issued by the government.

Reference no: EM131992838

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