Hi, I was doing some of the questions of the Kaplan books and I have doubt with this one:
Which of the following three bonds (similar except for yield and maturity) has the least Macaulay duration? A bond with:
- 5% yield and 10-year maturity.
- 5% yield and 20-year maturity.
- 6% yield and 10-year maturity.
The right answer is the third one but… What does the word “least” refer to? Thanks