All other things equal, a bond's duration is ________.

A) higher when the coupon rate is higher
B) lower when the coupon rate is higher
C) the same when the coupon rate is higher
D) indeterminable when the coupon rate is high

Coupon Rate

Annually, the return rate on a bond, presented as a percentage of its nominal price.

Bond's Duration

Bond's duration measures the sensitivity of a bond's price to changes in interest rates, quantified as the weighted average time until the bond's cash flows are received.