单选题 What happens to bond durations when coupon rates increase and maturities increase? As coupon rates increase, duration: As maturities increase, duration: ①A. decreases decreases ②B. decreases increases ③C. increases increases

A、

A. ①
B、

B. ②
C、

C. ③

【正确答案】 B

【答案解析】As coupon rates increase the duration on the bond will decrease because investors are receiving more cash flow sooner. As maturity increases, duration will increase because the payments are spread out over a longer period of time.