All else held equal, the duration of bonds

问题单项选择题

All else held equal, the duration of bonds selling at higher yields compared to bonds selling at lower yields will be:（）

A. greater.

B. lower.

C. equal.

答案

参考答案：B

解析：

Duration is inversely related to yield to maturity (YTM). The higher the YTM, the lower the duration. This is because the change in the bond's price ( or present value) is inversely related to changes in interest rates. When market yields rise, the value ( or cash flow) of a bond decreases without decreasing the time to maturity.