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- 2011-7-11
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- 2013-8-22
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"Sooner you recover the money, lesser you are at risk and hence lesser is the duration."
This statement will take care of all the three queries on Duration.
Higher Coupon ----> You'll recover money sooner ----> lesser Risk ---> less duration
Longer maturity ---> You'll get money later ----> higher Risk ---> higher duration
Higher Yield ---> You invested lesser money ---> You'll recover money sooner ----> Lower Risk ---> lower duration |
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