The duration of a coupon bond

A) does not change after the bond is issued.
B) can accurately predict the price change of the bond for any interest-rate change.
C) will decrease as the yield to maturity decreases.
D) All of the options are true.
E) None of the options are true.

Coupon Bond

A debt security that pays the holder a fixed interest rate (coupon) periodically until the maturity date, at which time the principal is repaid.

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures, calculated by considering all future coupon payments and the principal repayment.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often described as the weighted average time until all cash flows are paid.