More coupon payment or promised interest payment

A. higher its duration

B. lower its duration

C. zero duration

D. One year duration

Answer: Option B

Solution(By Examveda Team)

More coupon payment or promised interest payment lower its duration. Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates. A bond's duration is easily confused with its term or time to maturity because they are both measured in years.