AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 255 Topic 26 Discussion

AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 255 Topic 26 Discussion

GLO_CWM_LVL_1 Exam Topic 26 Question 255 Discussion:
Question #: 255
Topic #: 26

Which of the following is not true?


A.

The prices of zero coupon bonds fluctuate less than bonds with large coupons.


B.

The concept of duration stresses when a bond will make its payments to bondholders.


C.

The smaller a bond's coupon implies a longer duration.


D.

A conservative investor will prefer a bond with a smaller duration even though it may have a longer term to maturity.


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