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Basic Question 4 of 10

The higher the coupon rate, the ______ the Macaulay duration for a coupon bond.

A. higher
B. lower
C. The relationship depends if the bond is a premium bond or discount bond.

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

describe the relationships among a bond's holding period return, its Macaulay duration, and the investment horizon

define, calculate, and interpret Macaulay duration

CFA® 2024 Level I Curriculum, Volume 4, Module 10.