All other things equal, a bond's duration is ________.

A) higher when the yield to maturity is higher
B) lower when the yield to maturity is higher
C) the same at all yield rates
D) indeterminable when the yield to maturity is high

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, including all interest payments and the repayment of principal.

Bond's Duration

Bond's duration measures the sensitivity of the bond's price to changes in interest rates, often indicating the average time it takes for a bond to repay its true cost.

Price Volatility

The rate at which the price of a security increases or decreases for a given set of returns, representing the risk of price change.