Duration question, what's positive and what's negative? interest, question, price, positive, between

bchadwick

So if they say the duration is positive, does that mean there's negative relationship between interest rate and price; and if it's negative duration, then it's positive relationship between interest rate and price?

This was based on Schweser Vol. 2 Exam 2PM #15.6.

Darien

lindalibinbin Wrote:
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> So if they say the duration is positive, does that
> mean there's negative relationship between
> interest rate and price; and if it's negative
> duration, then it's positive relationship between
> interest rate and price?
>
> This was based on Schweser Vol. 2 Exam 2PM #15.6.


Yes.