For coupon bonds, duration is usually what in relation to maturity?

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Multiple Choice

For coupon bonds, duration is usually what in relation to maturity?

Explanation:
Duration is the weighted-average time to receive all cash flows from the bond, measured in years. A coupon bond pays periodic coupons before the final maturity, so those earlier payments pull the average receipt date forward. That means the weighted average time is less than the final maturity date. Only a zero-coupon bond has a single payment at maturity, in which case duration equals maturity. So, for coupon bonds, duration is usually shorter than the bond’s maturity, with higher coupons pulling the duration even further toward the present.

Duration is the weighted-average time to receive all cash flows from the bond, measured in years. A coupon bond pays periodic coupons before the final maturity, so those earlier payments pull the average receipt date forward. That means the weighted average time is less than the final maturity date. Only a zero-coupon bond has a single payment at maturity, in which case duration equals maturity. So, for coupon bonds, duration is usually shorter than the bond’s maturity, with higher coupons pulling the duration even further toward the present.

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