CFA Institute Exam CFA-Level-I Topic 2 Question 3 Discussion

Actual exam question for CFA Institute's CFA-Level-I exam

Question #: 3
Topic #: 2

[All CFA-Level-I Questions]

Duration of a bond normally increases with an increase in:

Atime to maturity.

Bcoupon rate.

Cyield to maturity.

Dpar value.

Show Suggested Answer

Suggested Answer: A

by Luis at Sep 12, 2024, 10:16 AM

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Florinda

2 months ago

Bonds? Aren't those those things you buy to keep your money safe? I'm going with C) just to be safe.

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Alberto

1 months ago

No problem! It's always good to learn more about different investment options.

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Armanda

1 months ago

I see, so it's not about keeping money safe. Thanks for the info!

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Johna

1 months ago

Yes, bonds are a way to invest money. But the duration actually increases with A) time to maturity.

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Cecilia

2 months ago

I think Mitsue is correct, as the yield to maturity affects the bond's price sensitivity to interest rate changes.

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Stephaine

3 months ago

Hmm, I think it's D) par value. Wait, what's a bond again?

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Lisbeth

2 months ago

Oh, I see. Thanks for clarifying!

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Justine

2 months ago

No, it actually increases with A) time to maturity.

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Alaine

2 months ago

A) time to maturity.

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Catalina

3 months ago

B) Coupon rate, no doubt. I've got this bond thing down.

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Donte

3 months ago

C) Yield to maturity seems like the correct answer. Gotta love those financial concepts!

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Sabrina

3 months ago

A) Time to maturity, of course! I learned that in my finance class.

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Alfreda

2 months ago

D) No, duration is mainly influenced by the time to maturity.

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Azalee

2 months ago

C) So, it's not affected by the coupon rate or yield to maturity?

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Franchesca

2 months ago

B) Yes, the longer the time to maturity, the longer the duration.

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Loren

2 months ago

A) Time to maturity, of course! I learned that in my finance class.

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Mitsue

3 months ago

C) yield to maturity.

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Galen

3 months ago

I agree with Louis, because the longer the time to maturity, the longer the bond's duration.

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Louis

3 months ago

A) time to maturity.

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