Inflation adjusted bond duration vs Fixed-rate bond duration


How does inflation-adjusted bond duration compare to fixed-rate bond duration?

I have thought that inflation-adjusted bond duration would be lower than fixed-rate bond duration since the increase/decrease interest-rates would have smaller impact on inflation-adjusted bond value than on fixed-rate bond value.

However, the guideline answer to Mark Meldrum’s Mock #4 (AM session) question 3G, says that inflation-adjusted bond duration is more than fixed-coupon bond duration.

Stumbled on this too and don’t really understand the answer either. I thought moving into inflation-adjusted bonds from fixed-rate bonds decrease duration?

I believe that Mark changed that.

Yes, I just checked the errata and it has been corrected.