All else being equal, the greater the interest rate the greater is the duration.
举一反三
- If a country had deflation, A: the nominal interest rate would be greater than the real interest rate. B: the real interest rate would be greater than the nominal interest rate. C: the real interest rate would equal the nominal interest rate. D: None of the above is necessarily correct.
- The real interest rate is equal to the nominal rate minus inflation.
- ______, her paper is of greater value than yours. A: All things be considered B: All things considered C: All things are being considered D: All things are considered
- Which of the following statements regarding Treasury bills (T-bills) is TRUE T-bills: A: have maturities greater than 6 months and can be sold at a price greater than par. B: are considered the risk-free instrument, which means there exists no interest rate risk. C: carry no coupon.
- The coupon rate of bond is the interest rate specified in the bond, which is equal to the ratio of the annual interest over the value of bond.