A. long-term; short-term
B. short-term; long-term
C. lower-coupon; higher-coupon
D. None of the given options
The longer the time to maturity, all else being equal, increases duration. Higher duration = higher sensitivity to interest rate changes.
Interest rates higher = price lower.
Correct Answer: short-term; long-term ✔
Last Updated: August 17, 2017